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Weekly Bible Verse – Co-Signing Leads to Suffering

November 9, 2009 · Filed Under Weekly Bible Verse · Comments 

He who puts up security for another will surely suffer,
but whoever refuses to strike hands in pledge is safe.  Proverbs 11:15 (NIV)

So….that’s pretty straightforward right there – co-signing a loan (”putting up security for another”) will lead to suffering.  Dave Ramsey and Crown Financial Ministries both recommend that you stay far away from co-signing loans;  certainly this verse underscores that recommendation.

Why do some loans require a co-signer?  Because the lender has decided that the person taking out the loan will probably not end up paying it back.  If you co-sign for the loan, it stands to reason then that you will probably end up being responsible for some or most of the loan.  If you are fine with that, then I guess it doesn’t matter.  On the other hand, if you don’t want to end up paying it back (especially if can’t afford to pay it back) then don’t, don’t, don’t co-sign a loan.  Also, keep in mind that if you do co-sign, your credit gets attached to the loan.  So, if the other person doesn’t pay and you don’t pay, then your credit report suffers.

Listen, let’s not get too fancy here – go back up and read the verse again…it’s quite clear…stay far away from co-signing a loan for anyone.  Better yet, maybe you should explain to them why taking out a loan in the first place is usually a bad idea. Help them to see that if they save up for their purchase instead of going into debt for it they will end up  in a better place in the long run.

God bless and have a great week…

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