This is one financial tip from the Bible that can save you a ton of pain in life!
This is "Wisdom in the Word" where we plow through the Bible for some much-needed
wisdom in life. Because, let's face it, if common sense was truly common reality TV
wouldn't have very many stars... or viewers.
The tip is this; do not co-sign a loan.
Now most of us know how this co-signing thing works, right?
Party A needs money for an investment, or home, or something like that. And then party B
(that's the bank) they have the money so party A goes to party B says "hey, Bank
can you give me some money?" Now party B, they know their stuff, and they say "hmm
statistically this person's probably not going to be able to pay back this loan"
And that's where you come in. Your party C so what you do is you cosign the loan
for party A and the bank says "When party A can't pay you get to pay!" This is the
thing that we're not to do and believe it or not the Bible actually has a lot
to say about it so right now I'm gonna share with you three Bible passages that
teach about why we shouldn't cosign loans and then I'm gonna give some
advice for the person who's already co-signed a loan because there's
literally a Bible passage written just for you on what you should do next
proverbs 1115 says whoever puts up security for a stranger will surely
suffer harm but he who hates striking hands in pledge is secure these terms
security or striking hands and pledge these are just synonyms for co-signing
alone where you offer your goods to pay if their goods don't the biblical advice
here is to hate it like this is your attitude your attitude should be I hate
co-signing I hate even the idea of co-signing I have a natural aversion
against co-signing so whether it's family friends strangers you just want
to be very much avoiding this kind of thing altogether our second passage
today says the following be not one of those who gives pledges who put up
security for debts if you have nothing with which to pay why should your bed be
taken from under you this is specifically for the scenario where your
co-signing but you're thinking in your mind if they ask me to pay this debt I
won't be able to proverbs says in that exact scenario do
do it meaning that the flipside of this is true if I'm gonna co-sign a loan I
need to be ready to pay the full debt that is incurred through me co-signing
this loan if the other person welches on the deal and they come after me I need
to be ready and willing to pay otherwise you are lying you are lying
and basically extorting money out of people through your lies so this is a
pretty simple biblical truth that will save you both in your character as well
as in your finances now you might be thinking Mike what if it's like a
brotherly thing you know it's a it's a motherly thing it's a fatherly thing
someone's like cosign for me and and I just want to do it to bless them because
I just love them and care about them well there's a verse for that a friend
loves at all times and a brother is born for adversity one who lacks sense gives
a pledge and puts up security in the presence of his neighbor do you see the
first part verse 17 is saying yes it's true that brothers are born for
adversity that we're to help each other in hard times but verse 18 balances this
out by saying but don't give a pledge don't put up security don't do it this
way this is not the best way for us to actually help people out by co-signing
just give them some money if you love them that much you know do something
else but don't put your own financial future hanging on someone else making
payments now the book of Proverbs is actually about wisdom and not as much
just solid rules so there may be a time to cosign but it certainly isn't when
you can't afford it it certainly isn't just because you love this person it's
going to be because there is a true wisdom behind this action so what should
you do if you've already done a co-signing of a loan actually proverbs
chapter 6 was literally written for your situation here it is my child if you've
put up security for a friend's debt or agreed to guarantee the debt of a
stranger if you have trapped yourself by your agreement and are caught by what
you said follow my advice and save yourself for you have placed yourself at
your friends mercy now swallow your pride go and beg to have your name
erased do not put it off do it now do not rest until you do save yourself like
a gazelle escaping from a hunter like a bird fleeing from a net so what is the
biblical advice it's like get this dealt with now go do a google search right now
on how to get out of co-signing alone the
you never should have signed do it right do it properly do it wisely
but you've set yourself up for some pain and maybe you can get yourself out of
the situation for the honor of God this was wisdom in the word where we
save you from bad loans one verse at a time would you like to do a verse by
verse study with me through the book of first Peter go ahead and click on this
card up here and we can begin right now