Co-Signing Loans

Pastor’s Note:

Are you willing to buy your son a house? Are you willing to buy your daughter a new car? Are you willing to pay the debts of your son-in-law? If you have lots of money, then that is fine. Most of us do not have money to pay the debts of other people.

Then why are you willing to co-sign a loan for a car or house for your friend, son, or daughter? What does “co-sign” mean? This is what it means: “If they can’t pay it (or will not pay) then I am willing to pay the debt for them.” That is why the bank wants you to co-sign. They want someone with a good job to promise to pay them, if your friend, son, or daughter can not or will not pay.

I refuse to co-sign with anyone. It is enough for me to pay my own bills and expenses. As a pastor, I have seen several people make the mistake of co-signing. One mother co-signed for her daughter’s boyfriend to get a car. The mother had to pay for the car, the boyfriend failed to pay. One man co-signed for a friend to buy a car. The friend could not pay for the car. The bank came after the man and he had to get a lawyer to fight for him. He did not want to pay for this car.

Don’t be foolish. Don’t co-sign with someone, unless you are willing to pay for the house, car, or

whatever your friend is buying.

The Bible calls King Solomon the wisest man that ever lived. (Except for Jesus Christ.) Here is what King Solomon says about co-signing (becoming surety) with your friend (or anyone else)

Proverbs 6:

¹My son, if thou be surety for thy friend, if thou hast stricken thy hand with a stranger, ²Thou art snared with the words of thy mouth, thou art taken with the words of thy mouth. ³Do this now, my son, and deliver thyself, when thou art come into the hand of thy friend; go, humble thyself, and make sure thy friend. ⁴Give not sleep to thine eyes, nor slumber to thine eyelids. ⁵Deliver thyself as a roe from the hand of the hunter, and as a bird from the hand of the fowler. KJV

¹ My child, be careful about giving a guarantee for somebody else.

Be careful about promising to pay what someone else owes.

² You might get trapped by what you say.

You might be caught by your own words.

³ My child, you might do this and be under somebody’s control.

Then here is how to get free.

Go to your neighbor and don’t be proud.

Beg him to free you from your promise.

⁴ Don’t go to sleep.

Don’t even rest your eyes.

⁵ But free yourself like a deer running from a hunter.

Free yourself like a bird flying away from a trapper. ICB

¹My child, if you co-sign a loan for a friend or guarantee the debt of someone you hardly know—²if you have trapped yourself by your agreement and are caught by what you said—³quick, 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. ⁴Don’t put it off. Do it now! Don’t rest until you do. ⁵Save yourself like a deer escaping from a hunter, like a bird fleeing from a net. NLT

Proverbs 11:

¹⁵He that is surety for a stranger shall smart for it: and he that hateth suretiship is sure. KJV

Guaranteeing a loan for a stranger is dangerous; it is better to refuse than to suffer later. NLT

Proverbs 17:18

¹⁸A man void of understanding striketh hands, and becometh surety in the presence of his friend. --KJV

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