Proverbs 17:18 “One who lacks sense gives a pledge and puts up security in the presence of his neighbor.” The Bible is pretty clear that co-signing a loan is not a good idea.
Cosigning is what the Bible calls being surety for some one. Proverbs 6:1-5 KJV My son, if thou be surety for thy friend, if thou hast stricken thy hand with a stranger, 2 Thou art snared with the words of thy mouth, thou art taken with the words of thy mouth.
But now I am writing you that you must not associate with anyone who calls himself a brother but is sexually immoral or greedy, an idolater or a slanderer, a drunkard or a swindler. With such a man do not even eat.
Proverbs 22:26-27 - NLT - Don't agree to guarantee another person's debt or ...
In a broader sense, this proverb could be interpreted as a warning not to discard the boundaries set by prior generations. A modern adage notes that before one takes down a fence, it's important to know why it was put up in the first place.
God's view of consigning or guaranteeing a debt
Although the Bible doesn't specifically use the word "cosign(ing)," it definitely addresses the topic and instructs us against doing it. In the book of Proverbs, a book of wisdom, we find several passages that provide the perspective God has on this practice.
Specifically, the church must not accept the fellowship of those who persist in blatant, stubborn sin. Non-believers, in contrast, aren't subject to that judgment. Paul insists that Christians must not even share a meal with someone who identifies as Christian but refuses to stop participating in sin.
12 Take care, brothers, lest there be in any of you an evil, unbelieving heart, leading you to fall away from the living God. 12 Be careful then, dear brothers and sisters. Make sure that your own hearts are not evil and unbelieving, turning you away from the living God.
20 Whoever walks with the wise becomes wise, but the companion of fools will suffer harm. 20 Walk with the wise and become wise; associate with fools and get in trouble.
Exodus 22:14 - If anything is borrowed, it should be paid back. If what is borrowed is lost or injured, full restitution must be made. Ps 37:21 - The wicked borrows but does not pay back, but the righteous is generous and gives. The Bible is clear that when something is borrowed is should be paid back.
It can damage your relationship with the primary borrower.
Co-signing has the potential to put stress on your relationship with the primary borrower, who is oftentimes a friend or family member. Your finances are tied to theirs for the length of the loan, even if your personal relationship changes.
As with other such warnings, the point is not that God's people ought to never lend money, at all. Rather, the danger is in making foolish choices about such things. Putting oneself at financial risk, for the sake of others, should only be done with careful consideration.
If the borrower is not faithful, the person who "put up security" for them risks losing their own wealth. Context Summary. Proverbs 6:1–5 is the first of two teachings on good financial health in this chapter of Proverbs. This passage refers to using one's own property as collateral, especially for someone else's loan.
10 Create in me a clean heart, O God; and renew a right spirit within me. 11 Cast me not away from thy presence; and take not thy holy spirit from me.
Therefore, the author calls his readers to persevere in their faith. Hebrews 3:14 tells us that “we share in Christ, if indeed we hold our original confidence firm to the end.” John Owen tells us that in this verse, the author reminds his readers that all of the benefits that they have come from Christ.
Hebrews 13:16 says: "And don't forget to do good and to share with those in need. These are the sacrifices that please God." In this week's devotional Pastor David helps us explore another way to worship God - by giving sacrificially to those in need.
Romans 16:17 In-Context
17 I urge you, brothers and sisters, to watch out for those who cause divisions and put obstacles in your way that are contrary to the teaching you have learned. Keep away from them. 18 For such people are not serving our Lord Christ, but their own appetites.
In 1 Cor. 5:9, Paul refers to an earlier letter he had written them, where he had apparently instructed them not to “associate” with sexually immoral people. The word for “associate” means literally mix up together. Paul is referring here to a type of separation, a withdrawal of fellowship.
10:13). That means we may need to wrestle, but we do so by God's power. We may need to see a temptation to its end, but God is faithful. When tempted to presume upon the grace of Christ, God will empower us to endure—for our good, the good of the church, and for his glory.
“Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.” – Proverbs 22:26-27. “Whoever puts up security for a stranger will surely suffer, but whoever refuses to shake hands in pledge is safe.” – Proverbs 11:15.
The Biblical doctrine of usury rests primarily on three texts: Exodus 22:25; Leviticus 25:35; and Deuteronomy 23:19-20. Exodus and Leviticus prohibit loans of money or food with interest to a needy brother or sister or even a resident alien. Deuteronomy forbids taking interest from any person.
When a person cosigns, they sign a document with the primary borrower, agreeing to share the responsibility of a financial obligation. Should the primary borrower not be able to pay for the good, the cosigner will be responsible for paying for the good.