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out.
•
• Cosigning a loan can be particularly risky. If the other person stops making payments, you're responsible for the full amount, including late fees or collection costs. Not only will your credit rating suffer, but the creditor can use the same collection methods against you as against the primary borrower, including suing you or garnishing your wages.
• Still, there may be times you want to cosign a loan to help out a relative or friend. The Federal Trade Commission's handy guide, "Co-signing a Loan," shows precautions to take before entering such agreements (www.consumer.ftc.gov).
• A few additional reminders:
• • Ensure that everything you were promised verbally appears in writing.
• • Make sure all blank spaces are filled in or crossed out before signing any documents -including the tip line on restaurant and hotel bills.
• • Don't be afraid to ask to take a contract home for more careful analysis or to get a second opinion. A lawyer or financial advisor can help.
• • Don't be pressured into signing anything. If salespeople try that tactic, walk away. (Be particularly wary at timeshare rental meetings.)
• • Keep copies of every document you sign. This will be especially important for contested rental deposits, damaged merchandise, insurance claims, extended warranties, etc.

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