Bowie Apostolic Church
Proverbs Day 3
Posted on January 6th, 2013

The Whole Truth About Cosigning

Proverbs 6:1 My child, if you co-sign a loan for a friend or guarantee the debt of someone you hardly know --2 if you have trapped yourself by your agreement and are caught by what you said -- 3 quick, get out of it if you possibly can! You have placed yourself at your friend's mercy. Now swallow your pride; go and beg to have your name erased. 4 Don't put it off. Do it now! Don't rest until you do.5 Save yourself like a deer escaping from a hunter, like a bird fleeing from a net.

Prov 22:26 Don’t agree to guarantee another person’s debt
or put up security for someone else.
27 If you can’t pay it,
even your bed will be snatched from under you.
(NLT)
Cosigning on other people's debts is spoken against in other places in the book of Proverbs (Proverbs 11:15; 20:16; 27:13). First off, many of you have already cosigned for people and it was a pleasurable experience. My father cosigned for me for my first brand new car and did not have to worry about one payment being late or unpaid. This is a very common practice these days and in this economy. There are also some parents, knowing their own children better than anyone else, who would never think about cosigning for one or any of their children. It is up to the discretion of each individual.

The book of Proverbs is written from the perspective of a king. In some portions, it is David talking to his son Solomon. In others, it is Solomon talking to his son. In the biblical sense, providing for their children and grandchildren was the guidance for kings and all fathers during that era. Clearly, cosigning for your children is not what these scriptures is warning against. However, even in that case you should be wise about the financial risk versus the reward.

Typically, the risk in cosigning comes when people have had financial difficulties in the past that would make it a risk for someone else to get involved with them in their financial dealings. A risk to our finances is a risk to Kingdom finance. Our finances (not just 10% but 100%) belong to God and we are to be good stewards of what God has given to us.

In these days, a person doesn't NEED a car that needs a cosigner if there are other cars available. The same goes for a lease on an apartment. If there are other places to live or an option to find a roommate who will take on the risk instead of you, that is a viable option. Risky business deals and snap judgment involving yourself in them would also fall under this category of financial risk management.

Cosigning for someone you barely know or someone who has had financial difficulties in the past falls into the context of what scripture is trying to warn against. "If you can't pay it...(Proverbs 22:27)," why sign up for it?


Posted in Bible 2013, Proverbs    Tagged with cosigning, surety, finances, wealth


3 Comments

Yolanda n - January 7th, 2013 at 7:58 AM
Good advice
Victoria B. - January 19th, 2013 at 10:45 PM
Thats why I always rip up credit card mail!!!!
Sis. Mae - July 3rd, 2013 at 10:53 PM
Thank You Jesus for the person that freely co-signed for me when I was a teen-ager buying my first car. I paid it regulary and in full and named that car "Precious-Trouble".

It is not practical for me to co-sign for anyone, but I have alternate avenues of assistance i.e.; "referrals"... (and don't laugh--prayer).

I am honored to be enrolled in Christ's College of Financial Management: Tithes Offering = Blessings Tangible Blessings Intangible. Courses include but not limited to: Give; Work; Relieve the Needy; Integrity; Faithfulness N Least=Much... Class Vision: Find the Pearl of Great Price; Sell all; and Buy it.

BUT... When "Life Happens"??!:(
How do you spell relief?
Not R O L A I D S
but JESUS-REDEEMER!
even JEHOVAH-DEBT RELIEF!
Leviticus chapter 25

COMPLETE: Prov 3:__; Honor the Lord with thy substance,...
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