Verse of the Day: Don’t Co-sign!!

18 A man devoid of understanding shakes hands in a pledge, and becomes surety for his friend.

Proverbs 17:18 (NKJV)

18 It is poor judgment to co-sign a friend’s note, to become responsible for a neighbor’s debts.

Proverbs 17:18 (NLT)

This is staight from the Bible, folks! I didn’t say it, although I completely agree with it. Co-signing is a bad idea. Even though you may have good intentions, co-signing a loan for anyone, even a family member, is just not a good idea and “poor judgment” according to the Bible. If the bank doesn’t trust loaning them money and thinks they won’t be able to pay them back, why should you? The reason your friend needs a co-signer is because they have bad credit and haven’t been responsible with money in the past. If you want to help them out, give them money, if you have the means to do so, but don’t co-sign!!

Many people who co-sign loans even for their sons or daughters get burned and vow to never co-sign again. But why wait to get burned to learn that lesson? When you co-sign, you are legally responsible for that debt in case your friend can’t make the payments. If they stop making payments, or are late with payments, your credit will suffer along with theirs. If they stop making payments altogether, the lender will come after you and there’s nothing you can do legally to get out of it. You’re going to be stuck making those payments.

So next time you have the urge to “help a friend” by co-signing a loan, turn your Bible to Proverbs 17:18 and read it out loud several times. Hopefully it will change your mind, if it hasn’t already!

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