Today is the Group Writing Project for the PF Bloggers.  We are writing about personal experience with loans.  If you would like to participate please do so and submit the link to your article here.  There is also a graphic on that page you are welcome to use.

When asked to write about personal experience with loans the first thing that comes to mind is when I co-signed on a car for my boyfriend.  (Do I even need to write the rest of the post?  I think you already know how this ended.)  I was 18 or 19 at the time.  We had been living together for about a year, everything was going great, really.  He desperately needed a new car and we had spent lots of time looking for the perfect car for him.

We sat at the salesman’s desk, all excited.  They came back and forth with different papers, you know how it goes.  Typical used car buying experience.  Then the guy came over and said that the only way we could get the loan was if I signed too.  He said if I just signed on the the line the car was ours.  So I did.  I had NO CLUE what I was doing.  I really didn’t know that by signing I was agreeing to pay back the loan if for some reason my boyfriend didn’t.  I don’t know what I thought.  Honestly, even if they had explained it, I probably would have still signed, but in my opinion they acted unethically to not tell me exactly what I was I getting myself into.  They made it seem so easy.  You sign here and your boyfriend can buy this car.  Simple.  What could go wrong?

I wish I remember the details of the loan.  I think we borrowed $12,000 for a 1994 Pathfinder.  I think.  I do remember our payment was $350 a month and the interest rate was outrageous.  Like 15% or something.  We didn’t even ask what the rate was.  I didn’t know to ask.  I didn’t know how loans worked.  It was the very first loan I had ever taken out.   When I saw the interest rate on the loan months and months later I knew that it was high.  But nothing I could do about it by that point.

So here’s the part you’ve been waiting for… We broke up and he stopped making payments on the loan.  (Shocking!)  About six months after we broke up I got a letter saying I owed some amount.  $1,500 or something.  I went and talked to him about it, he said he would pay it.  I for sure wasn’t going to pay it.  Then like 6 months after that I got a call saying they were going to repossess the car in two days unless I gave them something like $2,500.  I told the guy there was no way I’m going to do that.  I didn’t care if my ex boyfriend’s car is repo’ed.  I sure as heck wasn’t going to pay for his car.  This is really the first time it dawned on me what I had signed.

The guy said that if they repossess it I can pay the past due amounts and take possession of the car.  Then I would have to make the payments myself from that point forward.  I said I would do that.  He said he would call me in a few days and tell me where I could pick up the car.

He never called.  I never heard from anyone ever again about it.  It was on my credit as a repo and fell off almost 2 years ago.  My credit score jumped about 50 points when it fell off.