The danger of being a co-maker in a loan

I did a stupid thing five years ago: I became a co-maker in a co-worker’s loan. It was an act of kindness. Loans were extended to the employees of the company I was working for and since we’re in the Finance department, we were prioritized by the bank. So to race ahead of other employees, we signed loan forms right away. Since there were only four of us in Finance back then, we asked one another to become co-makers of each other. I was just unlucky to become the co-maker of this former staff of mine.

I, along with the other two of my Finance team, already paid the loan within the payment period given to us. Only one is still unpaid to date. My former staff, the one whose loan I was the co-maker of.

I thought she was able to pay off the loan two years ago. Apparently, after the last time I saw her, she stopped paying. Until I got a call yesterday from a lawyer handling her loan. This time around, I was lucky because my former staff is now working for one of my good friends. I was able to track her down easily. Today, she paid a percentage of her loan. I am monitoring her payments this time around. I was stupid not to have done this a long time ago. This time around, I won’t be the stupid one anymore.

I have an unsolicited advise to all of you (one I know most of you already know way back when): don’t be a co-maker to a loan! Because chances are, you will end up the loser in the whole deal. Unless, of course, you know the capacity of the person you are co-making a loan with. Otherwise, save yourself the headache and DON’T!


  • Interesting topic Sash. Talagang ayukong magpa co-maker especially if I don’t know well of the person. At kung may maraming anak at estudyante. may valid reason sila kaya hindi mabayaran ang utang. Ako naman, very considerate kaya hindi na lang ako magpa co-maker.

    Buti nalang you track her down or else ikaw ang magbayad sa utang nya. Talagang tayo ang mananagot if we the co-maker.

  • Hi. Good thing na-track mo siya.
    Anyways, I really do not like to be a co-maker of any loan. Minsan nga lang out of pakisama sa office, di ba?
    I will keep that in mind. Thanks for sharing.

  • Something like this happened to the boyfriend too. I really gave him a hard time about agreeing to be co-maker for a loan because it’s hard when the other party doesn’t pay or is late in payments