Whether you want to buy a home, a car, or go back to school in these tight economic times, it's harder than ever to get a loan.

More and more people are leaning on friends or family asking them to co-sign for the money they need

But beware of signing on the dotted line. That simple signature could put your family's entire financial future at risk.

When Nicole Navretil’s friend couldn't secure a student loan on her own, Navretil wanted to help so she agreed to co-sign.

"I thought if I could help someone get their education I should. And I didn't ever foresee there being a problem with it," said Navretil.

Little did she know her friend would stop paying and the creditors would come calling and garnish her tax returns. Her credit was left in shambles.

"Never in a million years dreamt that somebody that I trusted would move away, stop making payments and not even bother to return my phone calls," said Navretil.

But the fact is the Federal Trade Comission reports that on certain types of loans as many as three out of four borrowers now default on their obligations.

And that leaves the co-signer stuck with the bill.

"You need to keep in mind that you're being asked to take on a risk that a professional lender will not take," explained Malini Mithal, an assistant director for the FTC.

And when you sign, you're not just a reference. You're technically a co-borrower.

"If you don't have the funds to repay the loan they can take you to court, they can seize your possessions, they can garner your wages-they can even add on late fees and attorneys fees for the cost of the loan," Mithal said.

Credit expert John Ulzheimer says if you are considering co-signing for a friend or family member you need to have a serious talk beforehand.

"I would ask them to provide you with a copy of their credit report so you can see if they are meeting their other loan obligations. And second, I would absolutely ask them what kind of income they're currently making and what kind of stability do they have with their employer," Ulzheimer said.

And remember, even if they don't default - co-signing will still impact your credit.

"It will look like you have a larger amount of obligations than you really have for yourself and it might hurt your ability to take on credit that you need for yourself," said Ulzheimer.

As for Navretil, the government garnished part of the debt and her friend finally paid back the loan. But it'll be years before her credit recovers.

"It's very frustrating to have bad credit as a result of someone else's mistake," said Navretil.

Despite the risk, if you choose to co-sign, experts recommend checking your credit report often to be sure the lender is receiving timely payments.

A better solution might beoffering a financial gift to your loved one instead. It could help them qualify for the loan, and you may be able to get a tax benefit from the gift.