The Ramsey Show Highlights "Don't Act Like This Is Helping"
Nov 17, 2025
Jessica from Illinois calls in to ask for financial advice about her daughter's cosigned car loan. Dave emphasizes prioritizing her credit card debts before the car loan, explaining the risks involved with cosigning. He advises setting up a repayment plan with her daughter after paying off the loan, highlighting the dangers of helping someone afford what they can't financially handle. With a mix of humor and cautionary tales, this conversation unwraps the complexities of family lending and personal finance.
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Prioritize Your Own Debts First
- Pay off your personal credit card debt before addressing the cosigned car loan.
- Keep the daughter's car note at the end of your debt snowball since it is currently being paid on time.
Plan Repayment With The Borrower
- After you clear your credit cards and the cosigned car, have your daughter formally repay you.
- Treat the early payoff as temporary and agree on repayment terms to avoid future conflict.
Cosigning Creates Immediate Risk
- A cosigned loan is a contingent liability that creditors will pursue you for first if things go wrong.
- Lenders often target the cosigner because they doubt the primary borrower will pay.