Cosigned Loan Now in Default
I cosigned a loan for my sister a few years ago that is now in default because of circumstances beyond her control(loss of job, inability to find work. Although she tried to get them to work with her(its a student-type loan) and explained her circumstances it still went into default. It has been turned over to a third party debt collection and they are now calling me. They have called me many times before when she hasn't been able to pay, etc. and are now pressuring me to settle this debt by using our credit card or a check. This would put us in a bad financial situation because we already are struggling with our own debts because we went from a two income to one income family. What should I do? Should I try to settle it even if it means going into more debt just to get them to leave us alone?