Buying a big-ticket item today usually requires a co-maker.

This co-maker is someone who will guarantee another person's loan. So, people who want to take a large loan typically ask their family, close friends, or acquaintances to act as their co-maker. If everything goes well, nothing happens to the co-maker - no gain or loss.

However, that's not what will happen if it doesn't go well.

1. You're Taking Unnecessary Responsibility.

As a co-maker and guarantor, you are responsible for assuming the loan payment if the principal borrower fails to pay.

Typically, someone who wants you to be their co-maker will talk you into doing it. They will say you don't have to worry about anything because they are good payers. However, for the following years, you'll always be a few missed payments away from paying for someone's money that you did not enjoy.

Are you willing to take the unnecessary burden and risk in years to come? If yes, then go ahead.

2. It Can Cost You Money.

The biggest problem about being a co-maker is if the original borrower fails to pay, depending on the contract, you'll be liable to pay for it.

I don't want to go too far to look for an example, but a close family member was once a co-maker for her friend. It's just the routine process of taking loans, thinking, "What can ever go wrong?" However, the original loaner suddenly disappeared, and she was forced to pay for the remaining amount she never touched.

There's also a story by a former colleague who was a co-maker for another colleague. When the principal borrower failed to pay, he was also forced to pay out of his pocket.

As Proverbs 22:26-27 says, "Don't agree to guarantee another person's debt or put up security for someone else. If you can't pay it, even your bed will be snatched from under you."

3. You're Risking Relationships.

The worst part of being a co-maker is putting your relationship on the line.

I don't agree with becoming a co-maker because I have already heard enough of its downsides. I also don't want to do it because I don't want to risk my relationship with people. The issue with money is usually never just about the money but the trust and confidence you put in line.

I remember when a colleague asked me to sign a paper. She never even mentioned that it was to be a co-maker, so I was caught off guard. She said it was just a requirement, but I knew better, so I declined. She stopped talking to me for months. Can you imagine if I agreed to it and she failed to pay, and I was stuck paying for something I never owned?

My personal rule is If I can't pay for it on my own, I can't afford it yet.