Ask the Dolans: Should I co-sign a loan for a family member?

Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.

Click here to ask Ken and Daria your question.

Lending money is a touchy subject and in our current volatile economy, it's not uncommon for family and friends to turn to each other for a loan. We know how much you care for your loved ones, but this is a big step that could cause future problems and financial loss.

Before co-signing any loan, here's what you need to consider.

Dear Ken and Daria,

My grandson asked me to co-sign a loan, but I'm reluctant to do so because I recently retired. Should I sign?

-Mary



If you do decide to loan money to a family member, protect yourself with Ken and Daria's sample loan note.