Business

Parents trap kids into loan co-signing

interns Contributor

Out of school and looking to get on with life, Carolann Budge was like most 20-somethings: ambitious, hopeful and oozing good credit.

Instead of looking to her parents for help building her future — almost a rite of passage of young-adulthood with co-signed loans and apartment leases — it was the other way around for Budge, a Parker resident.

Her father, hard-hit by the economic collapse of the past few years, asked her to co-sign for a pair of auto loans to get him back on his feet.

“They wanted to start a painting business together,” said Budge’s husband, Adam. “His credit was pretty trashed.”

Parents seeking the financial help of their children is becoming more common, experts say, the result

“How do you say no to helping your father?” Adam Budge asked.

The trend is bearing out in a variety of ways — mostly auto loans and credit cards — that weren’t clearly seen until now.

Full story: Parents trap kids into loan co-signing – The Denver Post

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