565 – Parents' Debt In Your Name? Co-Signing Risks You Need To Know

565 – Parents' Debt In Your Name? Co-Signing Risks You Need To Know

Author: Doug Hoyes June 28, 2025 Duration: 30:20

When parents ask their adult children to co-sign a loan, add their name to a mortgage, or take out a car loan "for the family," it can feel impossible to say no. But what are the risks?

Ontario Licensed Insolvency Trustees Doug Hoyes and Ted Michalos break down the financial (and emotional) minefield of taking on debt for your parents. From credit utilization issues to legal responsibility and long-term credit damage, they explain how even well-meaning help can backfire, and offer solutions to support aging parents without risking your financial stability.

(00:00) Risks of Co-Signing for Your Parents' Credit
(02:30) Why Parents Ask Their Kids to Co-Sign Loans
(05:50) Supplemental vs. Joint Credit: What's the Difference?
(07:30) Co-Signing Auto Loans: Why It's Risky
(09:00) Credit Utilization: How It Hurts Even If Payments Are On Time
(12:30) Planning for the Worst: Protecting Yourself from Family Debt
(14:45) What to Do If You Can't (or Don't Want to) Help Your Parents
(16:30) Safe Ways to Support Parents Without Taking on Debt
(19:45) Helping Your Parents Manage Money as They Age
(26:30) How to Help Parents with Unmanageable Debt

How Co-Signed Debt Is Dealt with in a Consumer Proposal

Is a Secondary Credit Card Holder Responsible for Debt?

Can a Joint Bank Account be Garnished in Canada?

Best Debt Relief Options Ontario

Free
Credit Rebuilding Course and learning resources

Sign Up For The Monthly Debt Free Digest


Disclaimer:
The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 100

Debt Free in 30
Podcast Episodes
577 – How to Break Free from the Minimum Payment Trap [not-audio_url] [/not-audio_url]

Duration: 30:40
Making only the minimum payment on credit cards may feel manageable, but it's one of the riskiest financial habits for Canadians today. Doug Hoyes and Ted Michalos explain the real math behind minimum payments and share…
574 – Simple Shifts: Ways to Save More and Spend Less [not-audio_url] [/not-audio_url]

Duration: 30:44
Looking to save more and spend smarter? This episode is packed with practical, expert-backed tips - from insider grocery hacks and avoiding hidden fees to smarter banking strategies. Learn how simple shifts, like opening…
570 – Debt Free in 30: Bloopers & Best Bits! [not-audio_url] [/not-audio_url]

Duration: 10:41
While we're known for expert debt advice, let's say it's a good thing we're better at being LITs than we are at staying on script! Join us for a compilation of our funniest on-air flubs, the kind of candid moments that u…
568 – Can You Have Good Debt? Debt In Canada Today [not-audio_url] [/not-audio_url]

Duration: 29:58
Is debt still avoidable, or has borrowing become a fact of life in Canada? Ontario Licensed Insolvency Trustees Doug Hoyes and Ted Michalos answer our questions, share a simple test to assess new debt, and provide an act…
567 – How to Financially Prepare for Canada's Recession [not-audio_url] [/not-audio_url]

Duration: 30:21
Don't just brace for a recession, prepare to come out stronger. This conversation is about turning Canada's economic uncertainty into an opportunity for financial growth (or, at least, stability). We'll equip you with pr…