Top 5 consequences to be prepared of when you become a “Co-Maker”
“Co-maker” is a very popular term for the society of teachers. As far as the teaching profession is present, you will definitely be a co-maker once in your life as a teacher.
Teachers and other non-teaching personnel in DepEd have the capability to avail loans. In most cases, they need to submit many requirements to avail for a certain loan. This is where they need co-makers.
There is nothing to worry about being a co-maker as long as you know the person or the “maker” of the loan. Yet, there are also consequences to consider when you decide to be a co-maker of someone.
Here are the Top 5 Consequences to prepare for when you become a co-maker:
1. Some lending agencies might charge you when the “maker” fails to make full payment.
In case the maker gets sick or fails to pay the amount in the contract, the possibility that you will pay for it is very high. Though this is not applicable to all lending agencies.
2. The chance that your name will be in the list of borrowers alongside the maker as long as the loan is still alive.
Your name will be on the list of makers and borrowers as long as the principal amount is not yet paid in full.
3. You can’t avail of loan that easy when your “maker” is not a good payer.
Chance that you can’t avail that easy for loans since you are a co-maker of someone who has big amount of loan as well.
4. Be prepared to have the same obligation as the maker when the maker fails to be a good payer.
The obligation to pay is a very clear for co-makers whose makers don’t fulfill due dates.
5. Understand that as a co-maker, you don’t receive benefit from proceeds of the loan.
The maker will be the receiver of the proceeds of the loan. You are only there to vouch and sign with the maker.
So, for all teachers or non-teaching personnel out there make sure to select who you want to give your trust. Being a co-maker is like tying yourself to a knot of debt. You can never know when it will end if your maker is always on the verge of doing re-loan. Be wise in your decisions. After all, it will affect you if you trust everybody in your circle. – Clea | Helpline PH