terisaclark

Financial wisdom from a woman of faith

Archive for the category “Family”

Wisdom Wednesday//Co-signing//Proverbs 17:18

Proverbs 17:18 (NLT)

It’s poor judgment to guarantee another person’s debt or put up security for a friend.

 

Interesting scripture!  But it’s clear that God’s financial wisdom includes a strong word against co-signing.

I’ve never seen this go well.  I’ve witnessed it go wrong every time.  The relationship gets strained even when the borrower still repays it.  It’s like the debtor is also indebted to the one that co-signed for them. This changes the relationship from friend/family to borrower/slave to lender.  And in the cases where the debt is defaulted on, the co-signor now has themselves a debt they didn’t owe.  That will destroy the relationship for sure.

Recommendation:  Pay cash.  Avoid loans requiring co-signors (these loans are typically high interest rate/high risk loans too).  Kindly say no to someone asking you to co-sign for them.  Remind them you rather stay friends/family 🙂  Exercise good judgement – follow Proverbs 17:18.

Any war stories out there that you want to tell me about co-signing??  Change the names to protect the innocent.

 

 

 

Advertisements

Post Navigation