Episode Summary: "I Co-signed For A Car and Now They're Going To Prison"

Podcast Information:

• Title: The Ramsey Show Highlights
• Host/Author: Ramsey Network
• Description: The Ramsey Show Highlights delivers a quick, daily dose of advice on life and money in under ten minutes. Featuring experts like Dave Ramsey, Ken Coleman, Rachel Cruze, Dr. John Delony, George Kamel, and Jade Warshaw, the show is part of the Ramsey Network and is available seven days a week.
• Episode Title: I Co-signed For A Car and Now They're Going To Prison
• Release Date: July 30, 2025

Introduction

In this episode of The Ramsey Show Highlights, Frank shares a personal financial predicament that arises from co-signing a car loan for his brother-in-law. The discussion delves into the ramifications of co-signing, the emotional and financial toll it takes, and the expert advice provided by Dave Ramsey and George Kamel on resolving such situations.

The Situation: Co-signing Gone Wrong

Frank begins by recounting his ordeal:

Frank [00:02]: "I have a brother in law who is just a big dumb animal and I love him dearly. And he came to me and says, hey, I got 20 grand I'm going to put down on a car, but I need help, obviously I need help. And I said, you got 20 grand? Okay, fine, I'll do it for you. So I co-signed for him."

Frank expresses regret over co-signing, describing his brother-in-law disparagingly, which underscores the strained relationship and the emotional weight of his decision.

Dave [00:27]: "Oh, your big dumb, your big dumb brother in law. That's what you said?"

Frank [00:30]: "Yeah."

George [00:30]: "You got in the mud with this animal, my friend. We can't tell the two apart. We don't know who's dumb and who's smart."

The candid exchange highlights the personal conflict and the financial risks associated with co-signing for someone who may not be financially responsible.

Financial Implications and Emotional Impact

Frank outlines the dire financial situation that has unfolded:

Frank [00:49]: "I am in the process of either just letting this go into a voluntary repossession because I don't need it, I don't want it. And he's going away for a very long time on a vacation. An unwanted vacation."

Co-signing has led to a predicament where Frank faces a substantial car payment burden without the means to cover it, especially with his brother-in-law facing incarceration.

Frank [01:28]: "It's going to be an eleven hundred dollar car payment and goodness gracious."

The emotional toll is evident as Frank grapples with the consequences of his decision, compounded by his brother-in-law's legal troubles.

Expert Advice: Navigating the Financial Quagmire

Dave Ramsey and George Kamel provide practical advice to Frank on mitigating his financial distress:

George [02:25]: "It doesn't get you out of it. And so it's going to be even worse if you do the repo. So you might as well control the variables here, here. And sell it for as much as you can. And then even, you know, take the cash as a stupid tax and go. All right. I owe 12 grand to get this out of my life. That's the only way out of this. That is going to leave you with the least amount of harm."

George emphasizes taking proactive steps to minimize financial loss, advising Frank to sell the car privately to recover as much as possible rather than letting it repossess, which would exacerbate his debt.

Dave [04:00]: "And you didn't."

George [04:06]: "You know what else proverb says? Oh, what is it? The woman who could find a virtuous wife and her. The heart of her husband safely trusts her, and he will have no life again. Oh, man. Frank. Yeah. Ouch, man."

The discussion shifts to the importance of communication and trust within Frank's marriage, especially regarding financial decisions. George underscores the broader personal implications of financial missteps, affecting family dynamics and trust.

Dave [04:28]: "Total money makeover event you went to in 2003 didn't really stick. Did it for Frank?"

Frank [07:31]: "No, no. Well, it did. It did for. It did for a long time. And then, you know, I kind of, you know, you wander your way back into debt, you can't wander your way out."

Frank reflects on past efforts to manage his finances, acknowledging that while he made progress initially, he struggled to maintain financial discipline, leading to his current predicament.

Solutions and Moving Forward

The experts guide Frank towards actionable steps to resolve his financial issues:

George [06:11]: "So it's probably, you know, 10 to 12,000 bucks."

George [06:20]: "So it's going to be. Well, I'm, I might. I've got five closings this week, so."

George [06:36]: "Oh, good. Okay. Let's hope that if that doesn't work out, you can go to your local credit union and take out a personal loan for the difference and then clean that up fast."

Frank mentions his available liquid assets and upcoming financial activities, indicating a pathway to address the debt. George suggests securing a personal loan from a credit union to cover the shortfall, emphasizing the importance of swift action to mitigate further financial strain.

Frank [07:04]: "Never co sign. I'm going to write, I'm writing that on the back of my truck right there. Don't sign for anyone."

Frank vows to adopt a more cautious approach in the future, recognizing the perils of co-signing based on his painful experience.

Key Takeaways

1. The Risks of Co-signing: Co-signing a loan can have severe financial repercussions, especially if the primary borrower defaults or encounters legal issues. Frank's experience underscores the importance of thoroughly assessing someone's financial responsibility before agreeing to co-sign.

2. Proactive Financial Management: George and Dave stress the importance of taking control of the situation by selling the asset privately to recover funds and mitigate debt, rather than allowing it to go into repossession, which can worsen the financial burden.

3. Communication and Trust: Financial decisions significantly impact personal relationships. Open communication with spouses and partners is crucial to ensure mutual understanding and support in managing finances.

4. Leveraging Financial Resources: Utilizing available resources, such as personal loans from credit unions, can provide the necessary funds to address outstanding debts and prevent further financial distress.

5. Learning from Mistakes: Frank's commitment to never co-sign again serves as a valuable lesson in financial responsibility and the importance of safeguarding one's financial well-being.

Conclusion

In this episode, Frank's challenging situation highlights the potential dangers of co-signing loans without fully understanding the associated risks. Through the insightful advice of Dave Ramsey and George Kamel, listeners are reminded of the importance of financial prudence, proactive management, and strong communication within personal relationships. Frank's journey serves as a cautionary tale, emphasizing that while mistakes can be costly, they also offer valuable lessons for future financial decisions.

Notable Quotes:

• Frank [00:02]: "I have a brother in law who is just a big dumb animal and I love him dearly."
• George [02:25]: "It doesn't get you out of it. And so it's going to be even worse if you do the repo."
• Frank [07:04]: "Never co sign. I'm going to write, I'm writing that on the back of my truck right there. Don't sign for anyone."
• Dave [08:03]: "That's right. Amen."

This episode serves as a profound reminder of the intricacies involved in financial decisions and the far-reaching impacts they can have on one's life and relationships. By sharing Frank's story, The Ramsey Show Highlights provides listeners with invaluable insights into managing and overcoming financial challenges.