In my line of work within a specific branch of government, we have a close-knit community. Among my colleagues is someone I'll refer to as Sara, who recently put me in a rather precarious situation. Sara and I have always had a decent working relationship, strictly professional, and she's known for her integrity.

Sara came to me with a request to help her secure a personal loan of $25,000. Her objective is to purchase a space to set up a store in her hometown, aiming to boost her husband’s financial stability.

Personally, I’ve managed to stay debt-free and cautious about any financial engagements. Trusting Sara wasn’t the issue, but the magnitude of the loan and its implications made me anxious. I expressed my reservations, telling her, “I understand this is crucial for you, but I’m not comfortable with the risk associated with cosigning such a substantial sum. It’s a serious financial commitment, and I’m not ready to undertake that risk.”

This response led Sara to become visibly upset and emotional. She retorted, “You don’t trust me? This store is our chance to secure our financial future! The bank won’t consider my husband because he doesn’t have a job right now. I really thought you could help me.”

Although I felt awful for declining, my stance was firm based on my own financial principles—something influenced by my admiration for financial guru, Dave Ramsey, and his skepticism towards debt.

Now, the atmosphere between Sara and me has grown tense, and she's scarcely conversing with me. The guilt for not aiding her does linger, yet I remain convinced that prioritizing my financial health was the right choice.

Was I wrong to refuse to cosign her loan?

Imagine if this scenario played out on a reality show. The cameras capturing every detail, the audience likely split in their sympathies. The pressures of public opinion could potentially sway my decision or make the fallout from my refusal even more dramatic. How would the audience react, watching these personal and financial dilemmas unfold in real time? Would they champion my cautious approach, or condemn it as unsympathetic?

Should I have cosigned the loan for Sara?

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