The older you get, the more stable you are financially.  Planning for retirement provides a large platform for that stability.  This means that your stability can be seen as a good way to provide help to loved ones or friends who might need a cosigner for a loan.  Before you cosign, you might want to think twice.  You may and up holding the bag for a large amount of debt that you are responsible for.  Here are some loans that you should avoid at all costs.

Private Student Loans

Student loan debt is on the rise.  Partly because of the availability of private student loans.  These are loans that are outside of the federal loan system and are provided by private companies.  They have much higher interest rates and are not figured into any federal provisions for loan forgiveness.  Because they are student loans, they must also be repaid.  Bankruptcy and other means of ridding yourself of debt will not remove this debt.  It means that you could conceivably be paying for student loans well into your retirement years, with your social security checks.  Avoid these at all cost.

Business Loans

It might seem like a noble cause to help a younger person get a their business started.  The problem is banks knows that businesses are risky bet, even if there is a solid business plan.  That is why they often require a business loan to be secured by real estate.  That means if the business goes south, your home or other real-estate holdings could be on the hook to pay back debts.  There are other ways to help out with a new business.  Avoid cosigning a loan.

If you are in need of legal assistance for financial issues in retirement, contact Stano Law Group today.