Cosigning (Proverbs 22:26-27)

Again, it cannot be stressed enough how much the Lord dislikes someone becoming surety for someone else. In other words, do not cosign.

"Be not one of those who strike hands and pledge themselves, or of those who become surety for another's debts. If you have nothing with which to pay, why should he take away your bed from under you." Proverbs 22:26-27, Amplified

What this is pointing to is placing our faith in mankind. We cosign with the belief that the one we cosign for will be responsible. Our faith can never be in man. I have a coworker right now who is dodging phone calls from a couple who cosigned for his car. Believe it or not, he is not paying the bill, now the creditors are after them. Growing up, my parents would not even cosign for me. I am so glad that they did not, because I was not yet responsible enough myself. I would have been the financial demise of my parents.

You Never Know (Proverbs 17:18)

I know the I have written about surety before, but where the Bible repeats itself, we must become more attune.

"A man void of good sense gives a pledge and becomes surety for another in the presence of his neighbor." Proverbs 17:18, Amplified

When his verse speaks of putting up a pledge, I instantly went to a telethon in my head. This is not the kind of pledge that the Bible is referencing. It is taking about becoming the fall guy in a loan. As you sign your name on the dotted line as the cosigner, you are in essence telling the bank, "Hey, if this guy does not pay then you have every right to come after me." (Imagine a big Goofey laugh). In pledging for someone else you are not allowing them to buy the car of their dreams, you are only placing yourself as a secondary target. I am not saying that if you cosign, the initial payee of the loan is going to default. What I am saying is that you have no idea what may come of tomorrow and your friends financial status. How many people lost their homes during this current economic crisis? How many people lost their jobs during this current recession? You just never know.

Cosigning (Proverbs 11:15)

The Bible uses a term called "surety". Surety is when you take financial responsibility for someone else. It sounds kind of odd, but it even takes place today in our society, it is called cosigning. When you cosign, you give the ability for the creditor to take away from you for the irresponsible actions of the other individual. Surety is highly frowned upon by God.

"He who becomes security for an outsider shall smart for it, but he who hates suretyship is secure [from all penalty]." Proverbs 11:15, Amplified

To become that security for another person takes in essence takes the responsibility of payment away from that person. I am in no way condemning anyone who needs a cosigner or has been a cosigner; nor am I saying that all who need a cosigner skip out on their responsibility. In cosigning we open ourselves up the the penalty of nonpayment. We become the debtor instead. The bank will receive its money one way or the other.

I feel that the reason for the hatred of suretyship is due to the fact that we become a cheap imitation of Jesus Christ. He became our surety for nonpayment. There is no way that any man could pay the price for sin, so He became our cosigner. The debt that once belonged to humanity now rested on the shoulders of he Son of God. Jesus was able to give up because He was able to take back. We, once the papers are signed, relinquish all rights and cannot take anything back that is taken from us. Jesus desires for every man to take responsibility for his actions.

If we are to have a healthy view of security, then we understand that we have power over it. When the opportunity comes we have the right and the obligation to say no. Once that word leaves our lips, then we will not suffer the consequences of our friend's (or family's) nonpayment.

Friendship and Finances (Proverbs 6:1-5)

There are times when we stick our neck out for a friend. It may be that you have a job and you give a good report to your boss about your friend. But what if your friend wants to buy a car or a house. Should we have the same attitude? Should we write our name on the dotted line and become a cosigner? The answer is no. The Lord does not encourage us to do this at all. This kind of attitude toward finances can destroy relationships. Solomon explains why.

My son, if you have become security for your neighbor, if you have given your pledge for a stranger or another, you are snared with the words of your lips, you are caught in the speech of your mouth." Proverbs 6:1-2, Amplified

Oaths and pledges are hard things to break because our reputation is on the line. But Solomon states that if we have opened our mouths in pledges or shaken hands (NKJV) then we are snared or trapped. We feel that we must continue on this path we have paved for ourselves simply because we said we would do it. What Solomon is going to prescribe for us is a way to get out from under that oath. Essentially there are only two ways out of an oath: your friend releases you or the task is complete. Solomon would prefer neither.

"Do this now [at once and earnestly], my son, and deliver yourself , when you have put yourself into the power of your neighbor; go, bestir and humble yourself, and beg your neighbor [to pay his debt and release you]." Proverbs 6:3, Amplified

Solomon suggests, no commands, that we go to our friend and ask to be released. What will be said about this subject later in the Proverbs is that your bed will be taken from you if your friend refuses to to or cannot pay. In todays economic state, I would not guarantee anyone to be a cosigner, not even if we were at the peak of our economy again.

"Give not [unnecessary] sleep to your eyes, nor slumber to your eyelids; deliver yourself as a roe or gazelle would from the hand of the hunter, and as a bird from the hand of the fowler." Proverbs 6:4-5, Amplified

In nature, animals resist being trapped. But when we look at this subject, it seems that more humans are prone to simply walk into the net. Go and deliver yourself. Resist that trap. If you have not already become security for a friend, then never do it. I would much rather risk the friendship than my finances. Why, for the sake of my friend, should I put my family in jeopardy? I should not have to.