A man preparing to propose faces a financial crisis after his partner’s credit deteriorates due to multiple cosigned loans. Financial experts urge caution when co-signing, highlighting the risks of shared debt liability.
- Partner’s FICO score dropped 120 points to 587 after cosigning $87,000 in loans
- Three personal loans and one auto loan were cosigned with no recorded repayments
- 1.7 million U.S. consumers faced credit damage from cosigned debts in 2024
- Average cosigned loan balance in 2025 was $28,400, with a 14.3% default rate
- Financial advisors recommend written agreements and independent credit checks before cosigning
- Cosigning creates full legal liability regardless of primary borrower’s actions
A prospective groom in his early 30s has paused his engagement plans after discovering his partner’s credit profile has been severely damaged following the co-signing of three personal loans and a car financing agreement. The loans, totaling $87,000, were taken out over the past two years with no repayment history recorded in the partner’s name, though they are legally responsible for the debt. Credit reports show a 120-point drop in the partner’s FICO score, now sitting at 587—a level that would hinder future mortgage eligibility or loan approvals. Financial advisor Dave Ramsey addressed the situation on his radio show, emphasizing that cosigning is not a gesture of support but a binding financial obligation. He stated that even if the primary borrower defaults, the cosigner is fully liable. This scenario is particularly risky in relationships where one party has a history of missed payments or inconsistent income. The advisor noted that 1.7 million U.S. consumers had their credit scores negatively impacted by cosigned loans in 2024, according to public credit bureau data. The emotional and financial strain of the situation has led to strained communication between the couple. While the man is willing to help repay the debts, the partner’s inability to secure new credit has created a rift. Experts recommend that any shared financial responsibility be formalized with a written agreement, and that all parties obtain independent credit reports before entering such arrangements. The issue also underscores the importance of financial transparency before major life decisions like marriage. The case highlights broader consumer risks, especially among younger adults. According to Federal Reserve data, the average cosigned loan balance in 2025 was $28,400, with a default rate of 14.3%—more than double the rate for non-cosigned loans. These figures illustrate the long-term consequences of assuming another’s debt without full financial oversight.