Co-signed for a vehicle

You're stuck with the debt. That is why (generally speaking) the worst thing you can possibly do (excepting marriage) is to co-sign somebody's loan. You should attempt to work out some type of settlement agreement with the finance company before they ruin your credit rating.

Getting out of a cosigned loan is almost impossible. You'd need to convince GM to let you out of it. There's no benefit for GM to do that - it increases the chance of not collecting on the loan.

You might try setting the boy up with a debt counselor. Here's a resource: http://www.nfcc.org/

Unfortunately, when you co-sign you are just a liable for the debt as the other person. That's why you have to be VERY careful who you lend your name to because someone's mistake can cost you thousands in higher interest rates because a debt like this will really hurt your credit.

Sorry, I wish there was a better answer, but you'll just have to take this one as a hit to your credit and try to get him to pay the debt because the sooner it's settled, the sooner it'll be off your credit as well - I think typically 7-10 years.

GM sent me notification that the truck was sold at auction and gave me the remander of what he (we) owe but it doesn't appear to be a bill. When it comes time for them to collect will they go to him first for this debt?

Thanks for all of your help, I appreciate it.

You are sadly stuck with it. You have to be careful on what you co-sign. You are making yourself legally responsible on the loan if the other person defaults.

You'll just have to work with them to get it down as much as you can.

In the future, be very careful about who you co-sign a loan with.

Yeah - I learned this the hard way as well. Remember that cell phones, credit cards are the same way as well. In the eyes of the institution you are the same and it stays on there for a very long time.

ON THE UPSIDE - there are a lot of things that you can do to improve your Fico score to counter-act a little of the damage that has been done:

Pay your bills on time all of the time (raise your score 20 point by paying bills on time for a month)

Keep balances low on your credit cars (maxing out one credit card can lower your Fico by 70 points

Don't open new credit cards you don't need (New accounts lower your average account age and can lower your score by 10 points)

Manage your credit cards responsibly, but don't avoid having them. Someone that manages credit cards well is much less risky than someone who doesn't have a credit card.

Keep your cards open - showing your credit history is a huge bonus to your Fico score.

I learned a TON from Suze Orman's "Money Book for the Young Broke and Fabulous" because spends several chapters explaining Fico and how to manage it the best way possible.

Unfortunately you are laible for 100%. U are no less liable just because u r the co-signer. Reality on co-signing is the bank really approved U. without u, he could not have gotten the vehicle.

When the purchaser of a car defaults on payment and there is a co-signer, the co-signer the assumes the debt so that's why it's very important that you know the person that you co-sign for and their ability to pay otherwise you stuck not only for the loan but for any damage that might occur to your credit. Your only option might be to take the other party to court? While this might help you recover some of your money it won't help any damage to your credit. Sorry!