So this week has been hectic. I'm over my food budget and clothing budget.
I've been covering and doing two jobs since my coworker left. They just got someone new to cover so hopefully they don't need me to do a ton of training.
I also has a longtime friend ask me to co-sign a loan for him. I don't know if anyone has been in this position before, but it's a bit unnerving. I want to help my friend but I have to take a step back and wonder, why is he in the position?
Here's a little background: I've known him since high school and he's had a crush on me since then. We became friends in high school and even though we went to different colleges, we've always kept in touch. We never dated because I've always considered him a friend and was never attracted to him.
So when he asked for me to cosign, I thought about all his bad spending habits. He loves shoes and buys expensive sneakers and italian leather shoes. He also love brand name clothing and would never leave his home in anything less. I mean he's always dressed very well, but he can't afford it on his income.
Now he says he needs money for grad school and to buy a new car. Why didn't he think about that before you spent $400 to $600 on shoes!? I have a shopping addiction but I always had enough money to at least make the minimum payments on my credit cards. I never missed a payment becuase I knew that I wanted a home later in life and I needed good credit to get loans for grad school. My friends knew this, so they all know I have good credit. I guess that made me the Loan Center of the group(yeah right!).
This is the 7th person in the last year whose asked me to cosign a loan! I told him no as nicely as I could. I just have to wonder if I have Chase written across my face. They all seem to want to use my good credit. Furthermore why would a friend put another in a position like that? If I was in the same position, I would be embarassed to let my friends know that I was so irresponsible, I can't get a loan on my own.
Do I have Chase written on my forehead?
August 25th, 2008 at 04:20 pm
August 25th, 2008 at 04:50 pm 1219679414
August 25th, 2008 at 05:11 pm 1219680687
August 25th, 2008 at 05:16 pm 1219680964
August 25th, 2008 at 05:48 pm 1219682933
I think you made a very wise choice of not lending to your friend. I would never cosign for my friends, but I would give them cash if they need it, but never a loan.
The other thing is that currently, you are not in a position to help. You have over $14,400 in debt and you are having problems staying within your budget (food and clothing).
I am not trying to mean or anything, just taking a look at your financial picture. If you were out of debt, and had some money set aside for emergencies and wanting to give him a few grand to help him out (with no strings attached). I would say go for it. But I don't think you are in that position yet.
Take care of your self first and then you have more then enough to help other people. Good luck!! And again, I apologize if I sounded harsh, that wasn't my intention.
August 25th, 2008 at 06:05 pm 1219683930
August 25th, 2008 at 06:42 pm 1219686154
August 25th, 2008 at 08:05 pm 1219691104
I am glad you said no. You at least know this friend for some time. The worst was when I had a first-cousin-once-removed that I had met only twice ask me to cosign on a loan for education - she apparently figured I was one of the few in the family to "value" education. I declined, of course (stifled a laugh) - have I heard from her since then? No!
August 25th, 2008 at 08:59 pm 1219694397
August 26th, 2008 at 03:58 pm 1219762723
Seven of seven- these people were all in their early 20s. It's an epidemic, you would be appalled to see all the credit card recruiters on college campuses. I was one of the luck few who had minimal credit card debt. Most of my debt comes from school loans. So all my "can you cosign for me?" friends have shools AND credit card debt to pay off. Also family members said no or were in worse financial situations than their kids.
August 26th, 2008 at 07:20 pm 1219774806