I made a terrible mistake and cosigned a loan for a friend last year. We have known each other for 12 years.
It's been a horrible situation the entire time. She's been overdue, had extensions, etc. I am constantly on the phone with the credit company and I am just so sick of the whole thing. I've never been in a situation where I owed money and it's very upsetting to me.
I just really don't know what to do. I don't want to pay it for her, because I could potentially be doing so for 4 years!
The only thing that reassures me is that it is only my credit being destroyed - my dh's is still good. We already have our mortgage, my car is paid off, we have healthy bank accounts, etc., so most likely, I will not need to apply for credit any time soon.
I do realize that I would still be responsible for the outstanding balance if the car is repossessed. I am hoping that she will make arrangements with them and it will not come to that, but I don't know what will happen.
What should I do? I am just so lost! Whether it's 5 years of late payments or a repossession, what will the effects be? How do I go about fixing my credit once this is over?
Any advice would be very appreciated.