MoneyWalk 56 Do Not Cosign
This program will help you undo financial bondage.
You have a responsibility to help those truly in need according to your ability. However, you must discern the devil's strategy to have you waste money the LORD entrusts to you on people who (a) mismanage money and responsibilities, (b) will continue to do so, (c) do not regard the LORD’s will and way, and (d) would lead you to squander money on funding their desires (cars, houses, boats, etc.) that could be spent taking proper care of your family, leading people to Christ, and forming them into His disciples.
The vast majority of people who ask others to cosign fail to meet their obligations and the payment responsibility then falls back on the people who cosigned the loans. Therefore, refuse to cosign for others while encouraging them to use biblical money management principles. In the vast majority of situations, you do not help people when you cosign loans for them. Instead, you enable them to continue acting irresponsibly, which continues their pattern of forsaking wisdom in caring for themselves and family. Instead of cosigning, lead them to the knowledge of God’s will, sacrifice, contentment, self-control, delayed gratification, and complete trust in Him. These things will help them better manage time, money, and resources in ways that increase income and wealth. Then, they will no longer need to ask people to cosign loans.
When a true need exists, it's best to give a person cash or resources on hand you don’t need to take care of priority items like family, mortgage, rent, and bills you owe. Prudence dictates that you give only after asking enough questions and allowing the Holy Spirit to give spiritual discernment to gauge whether the person will be responsible in managing money going forward. This helps them resolve abnormal situations and eliminate irresponsible activities that would otherwise lead to future financial problems.
Of course, there are times where you extend help to people in the community or in another part of the world, simply because you’ve identified an emergency need. Sometimes, we don’t know entirely the situation at hand and whether or not the person is irresponsible and it led to the sad situation. So, whenever the Holy Spirit directs you to help a person or give to a need, you must obey Him (a) for your best to come to pass, (b) for Him to bring what is important to the attention of the person being helped, and (c) for your giving to be an example to others of complete trust in the LORD’s guidance.
However, consider that He never asks you to do anything in a way that violates scriptural commands and principles. This should be the basis for measuring the manner you will respond. The bible never encourages people to take on monetary debt either through borrowing or cosigning. So, refuse to cosign for anyone unless you already have the money saved in a safe and sound place and are truly prepared to pay off the entire loan when they default on it.
If you have cosigned a note for someone, the bible tells you to quickly go to the lender and attempt to remove your name off the debt. It also tells you that your belongings are subject to be taken if you are not released from the debt, because in most instances the person you cosigned for will fail to pay the debt off. Please don't fall out with a friend because you failed to make the right decision by refusing to cosign for his/her debt. Your failure might be one of the reasons the person has not become responsible in his/her financial dealings. Continue to love the person, stay away from co-signing in the future, and guide him/her to complete trust in and obedience to God’s will in the area of finances moving forward. This takes pressure and stress off trying to be your friend’s savior and puts the concern squarely upon your friend following biblical principles to have all his/her need meet according to the riches and glory in Jesus Christ.
Please pray for this ministry, email me with any questions, and contact me to speak at your business or ministry conference or workshop. May the LORD bless you richly as you follow His plan!
Proverbs 11:15, 17:18, 20:16, Romans 13:8, Ephesians 5:15-17
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