Show of hands: How many of you know the best response to this topic before I even go into it? (You don't actually need to raise your hand - I can't see you.)

All parents, grandparents, and best friends know, at some point in their lives a loved one will ask them for money. It's a certainty in life, like death and taxes. Unless you live your whole life as a hermit in the Ozarks, someone in your life is eventually going to hit you up for cash.

And then there are people who like to go above and beyond simply asking to borrow a couple of bucks and move on to asking you to cosign a loan for them. If anyone's ever gone that extra mile and asked a little bit more of you, you know what co-signing a loan can mean for not just you, but your credit as well.

For those who don't - check out some reasons why you may want to reconsider cosigning a loan.

Good things come to those who wait

But they come even quicker to those who take. In other words, why wait for a loan you can't seem to get on your own when you can just get someone to cosign it for you? With that thought fresh in their head, your favorite son/daughter/grandkid/best friend/twice-removed nephew comes to you for help in getting a loan. But before you sign the papers, think about what it is you're actually signing away.

You should treat a cosigned loan like you would any other type of personal loan, i.e. as a gift that you shouldn't count on being repaid. The reason this person is coming to you for help with a loan in the first place is the lender won't sign it over to them alone. This means that the lender already deems the person looking for the loan as a potential risk for not repaying the debt. This could be for any number of reasons; they could have a bad credit history or no credit at all.

Do not pass Go, do not collect $200

Say your very best friend has asked you to cosign a loan for them. They were turned down by the bank and really need this loan, and that means you're their only hope, Obi-Wan. Now is the time to weigh your options. If you do decide to cosign a loan, you are just as financially responsible for it as the other person on the agreement.

So what happens when your friend up and disappears into the night, or finds that they have no way to pay the debt down themselves? Well, now it's your problem. And those lenders are gonna come calling, so you don't want to be the only one left without a chair when the music stops.

Hey, so...y'know...about that...money you owe me.

Here's a good reason you should never really loan a significant chunk of change to a friend: It can put a serious strain on the friendship. No one wants to have to check up on a friend to make sure they're keeping up with their bills, especially if they have an actual stake in those bills. Imagine having to deal with those bills on your own should your friend default on them.

So unless you know your buddy is really good for the cash, stop and reconsider banking more than the actual bank is willing to consider on them. After all, that bad loan is now your problem, and if you don't have the money to pay for it, then it's your credit history that'll be taking the biggest hit. And guess what might happen when you need a loan yourself?

So what can I do to help?

For those of you who just can't stand the thought of not helping your fellow man, there are some ways you can help without putting yourself right there in the hole too. Chances are the person in need of a loan can be helped financially in other, less risky ways. Help them with a smaller loan or other favors that you don't necessarily expect to be repaid.

This way, you'll still have helped them with their financial troubles without too much risk to either your friendship or your own credit.