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  #1  
Old 02-02-2007, 10:54 PM
xmen xmen is offline
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Default Paying friend's debt

I have a good friend who accessed a personal loan. I signed as his Co-maker in compliance of the requirements of the loan. Now I received a notice from the lender that I have to pay the outstanding loan plus interest since my friend defaulted in paying. While i know the responsibility of signing as Co-Maker, how can I deal with this to arrive at a win -win solution.
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  #2  
Old 02-03-2007, 07:22 AM
Exodus Exodus is offline
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Default Re: Paying friend's debt

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Originally Posted by xmen View Post
I have a good friend who accessed a personal loan. I signed as his Co-maker in compliance of the requirements of the loan. Now I received a notice from the lender that I have to pay the outstanding loan plus interest since my friend defaulted in paying. While i know the responsibility of signing as Co-Maker, how can I deal with this to arrive at a win -win solution.
Pay the loan or take him to small claims court. The lesson learned is never co-sign for a loan.
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Old 02-03-2007, 01:52 PM
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taiarain taiarain is offline
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Default Re: Paying friend's debt

Pay off the loan because it is hurting your credit. Then, give your friend 10 days to repay you. If the money isn't there, go to court or see if you can get a debt collection agency to help.
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Old 02-03-2007, 05:22 PM
riskey58 riskey58 is offline
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Default Re: Paying friend's debt

I would never co- sign for a loan for a friend. It can break up a friendship real fast.
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Old 02-04-2007, 08:55 AM
xmen xmen is offline
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Default Re: Paying friend's debt

Thanks for your pieces of advise. The dilemma is that I can't pay the loan myself. Helping him source out funds to pay the loan is the best I could do or explore a possible repayment scheme with the lender.
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Old 02-04-2007, 11:15 AM
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taiarain taiarain is offline
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Default Re: Paying friend's debt

If you can't clear this up on your own, you need to sit him down and call the lender together. Put the phone on speaker and don't leave until he has hammered out a new repayment schedule. DO NOT wait for him to do this on his own.
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Old 02-04-2007, 06:05 PM
nangel78 nangel78 is offline
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Default Re: Paying friend's debt

I would take tis to small claims court if you keep having problems getting him to pay.
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Old 02-05-2007, 05:00 AM
davidrachel davidrachel is offline
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Default Re: Paying friend's debt

i faced similar kind of problem,my friend took a loan with my witness at the time of buying a new house, he unable to pay my debt few months, daily i am getting a phone call from debit agency, they harassed, many times a met that people and explain my problems, i found a good consumer advocate at right time.

Last edited by brian; 02-05-2007 at 05:36 AM.
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Old 02-05-2007, 05:38 AM
brian brian is offline
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Default Re: Paying friend's debt

This is a good reason why you should never co-sign a loan - and under no condition should anyone do so if they could not cover the amount.

When you co-sign the loan, it's basically agreeing to take on the debt when defaulted, and whatever the reasons for the defaulting, the co-signatory has to take responsibility.

As above - contact the lender ASAP - the sooner you can agree terms between yourself, lender, and friend, the better.
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