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We advised her to get her parents to refinance the loan in their names only." Emotional collateral damage Leslie Lezia Brenner, a psychologist in Atlanta, said such situations can be damaging emotionally as well as financially.

But Lease, a nationwide car leasing marketplace, reports a 29 percent increase over the past two years in the number of parents asking their children to co-sign for them when shopping for a car lease.

"These are people who can afford to take over the lease payment, but have issues qualifying for credit," says Sergio Stiberman, CEO and founder of Lease

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So what should you do if your parents come to you with a request for help? Before you co-sign, make sure you consider the implications.

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