What is the story about?
What's Happening?
A car salesman has sparked a debate on TikTok by highlighting a trend he observes among couples purchasing vehicles. He advises women against cosigning for boyfriends who may not be financially stable. The salesman notes that many women who visit the dealership are financially well-established, with high credit scores and steady jobs. However, he often sees their boyfriends, who may have poor credit and unstable employment, influencing their financial decisions negatively. The salesman warns that cosigning a loan can lead to significant financial risks, as it makes the cosigner equally responsible for the debt. If the primary borrower fails to make payments, the cosigner's credit score can be adversely affected, and they may be pursued for the balance.
Why It's Important?
The advice given by the car salesman underscores the financial risks associated with cosigning loans, particularly for women who may be more likely to bear the financial burden. According to NBC News, about 38% of cosigners end up paying some or all of the loan themselves, and relationships often sour as a result. This trend highlights the importance of financial independence and caution in financial commitments, especially in personal relationships. Women, who statistically have a higher likelihood of being left with the bill, are encouraged to protect their financial health by avoiding cosigning for partners unless they are legally committed.
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