It All Started as a Friendly Request
One day, Jenny received a mail from a certain financing company which made her very furious and worried at the same time. “I never had a loan with any company! Why would they send me this demand letter?”
The letter is demanding her to pay the financing company an amount nearly fifty thousand pesos ($1,250.00). This thing made her worry that much because all those times she had been very careful so as not to incur any loan with any institution. She is trying her best not to spend more than what she earned.
So much so she’s trying her best to pay whatever she borrowed on time. That is why she was really annoyed and she does not know what to do while reading the letter. Reading further, she realized the biggest mistake she had ever committed. She remembered that she signed as a co-maker/co-borrower when her friend applied for a loan with this financing company several years ago.
She was confident that her friend will not bring her any problem regarding this matter that is why she allowed herself to do a favor for her friend. She already forgot about the said loan and was transferred on another place. She stayed there for several years and she was not expecting this thing to happen.
The letter is demanding her to pay the financing company an amount nearly fifty thousand pesos ($1,250.00). This thing made her worry that much because all those times she had been very careful so as not to incur any loan with any institution. She is trying her best not to spend more than what she earned.
So much so she’s trying her best to pay whatever she borrowed on time. That is why she was really annoyed and she does not know what to do while reading the letter. Reading further, she realized the biggest mistake she had ever committed. She remembered that she signed as a co-maker/co-borrower when her friend applied for a loan with this financing company several years ago.
She was confident that her friend will not bring her any problem regarding this matter that is why she allowed herself to do a favor for her friend. She already forgot about the said loan and was transferred on another place. She stayed there for several years and she was not expecting this thing to happen.
What is a Co-maker/Co-borrower?
Financing institutions would usually require a borrower to have a co-borrower before they could file a loan application with them. This would serve as additional guarantee that a certain loan will be paid. In the event that the borrower cannot pay his/her loan, the financing institution would run after the co-borrower.
This is being done instead of requiring collateral.
This is being done instead of requiring collateral.
Why Should We Decline A Request?
As much as possible, we should not allow ourselves to become a co-borrower. It will be very risky on our part if we would tolerate other people to make use of our name unless we know the people’s character.
Many relationships were destroyed because of this. Many lives were ruined. There are times that in our desire to help our friends, we didn’t realized that we are putting ourselves in peril. So let us be wary and take all precautionary measures so that we will not regret in the end.
Many relationships were destroyed because of this. Many lives were ruined. There are times that in our desire to help our friends, we didn’t realized that we are putting ourselves in peril. So let us be wary and take all precautionary measures so that we will not regret in the end.
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