In general, you should avoid co-signing a loan, as it can negatively affect your finances. Should the primary borrower default, you’re automatically accountable for future payments, which could consume a sizable chunk of your budget. Falling behind on payments can severely damage your credit score and result in the lender seizing your assets. Co-signing a loan confers little or no benefits and exposes you to a wide range of risks. As a result, you should only act as a co-signer out of a genuine need to help a trustworthy family member or close friend.