Tag Archives: Loans

Thoughts On Co-signing

Proverbs 6:1-5

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.

Practical Wisdom

When it comes to the wisdom of Proverbs, some think it’s all spiritual. Much like the person who thinks faith should be kept out of everything secular, such as politics or the workplace, these people assume biblical wisdom is incompatible with everyday life. How wrong they are!

Today’s passage is a lesson in financial wisdom. Here, Solomon is addressing the dangers of unwisely obligating one’s self to a creditor (stranger) on behalf of a friend.

Unsure Surety

There is nothing wrong with helping a friend. As a matter of fact, it was Paul who told Philemon that if Onesimus owed him anything to “put that on my account…I will repay” (Phil. 1:18-19). Helping someone out when they are truly in need, especially when you have the ability, is the right thing to do.

“If there is a poor man among your brothers in any of the towns of the land that the LORD your God is giving you, do not be hardhearted or tightfisted toward your poor brother. Rather be openhanded and freely lend him whatever he needs.” – Deuteronomy 15:7-8 NIV

However, Solomon is warning that we should be very careful when entering agreements (striking hands) on behalf of others, even our friends. You see, to be a “surety” for someone means guaranteeing the lender your friend will pay his debt. The problem comes when you end up owing what you cannot pay, therefore putting your family and your self at risk.

“Can You Co-Sign for Me?”

How many times have you been asked to co-sign on a loan? How many times have you had a brother-in-law ask for help starting a business that “can’t fail?” How many times have you felt sorry for someone, only to get burned in the end?

Many times we want to help our friends and loved ones, but end up snared by people we don’t even know. “I’ll help you this time,” we say. Then, a few months later, Hunter Loan Company is tracking us like deer.

Spiritual Application

There is a practical, yet spiritual principle to be found in the following verse: “[If] any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel” (1 Tim. 5:8). The principle is “if you can barely afford to take care of your own family, don’t make financial commitments you can’t keep.”

Solomon says that even if you have become surety for a friend, prove his friendship – get him to relieve you of your obligation. Otherwise, when the rubber check hits the road, you risk losing not only your money, but your good name, your friend, and even your faith.

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Protecting Assets

Proverbs 27:13

“Take his garment that is surety for a stranger, and take a pledge of him for a strange woman.”
“Get security from someone who guarantees a stranger’s debt. Get a deposit if he does it for foreigners.” (NLT)
Taking a Garment

The verse today relates to the previous.

There are many dangers which we must be constantly watching out for.

Whether in business (such as banks) or personal life, we have to make sure we are not being taken advantage of in some of our dealings.

For example, suppose you have a friend who is always helping others financially, and he always asks you for help with a promise to repay. Over time you learn that he never makes good on that promise.

To help in such matters, you can ask him for something valuable as a way of urging him to repay.

This item serves as a reminder of a debt that is owed.

Reminder of the Debt

This passage has little to do with spiritual matters, but there is another debt in our lives that a constant reminder.

In Exodus 20 and Deuteronomy 5 we find a list of things called the 10 Commandments. In Romans (specifically chapter 5), Paul tells us that the Law, the 10 Commandments, was given as a reminder of our sin. It shows us how we fail to live up to loving God.

The Law shows us our debt.

Fortunately, our God has shown us grace and forgiveness. He paid our debt by sending His Son, Jesus of Nazareth, to live a perfect, sinless life and die on a cross to pay the debt we could not pay.

To receive the full grace and forgiveness He has offered us, we need only believe that Jesus is God made flesh, paid for our sins on the cross, and rose again to life and now lives with the Father awaiting the time to return and redeem His faithful.

Heavenly Father, help us to be good stewards of what You have given us. We admit we are sinners in need of grace and forgiveness. Thank You for offering that grace and forgiveness through Your Son, Jesus Christ. Give us the faith we need to live in the light of that truth every day!


Just Say “NO!”

Proverbs 11:15

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

Proverbs 11:15, 16, & 17 are connected in that each involves someone who acts with kindness, but with varied results.  In today’s verse, we consider a kindness that brings injury; in tomorrow’s, a kindness that brings honor; and in the third instance, a kindness that brings benefit.

A KINDNESS THAT BRINGS INJURY

In the first half of verse 15, we read, “He that is surety for a stranger shall smart for it,” or as the ESV reads, “Whoever puts up security for a stranger will surely suffer harm.”  Solomon returns here to a theme he has already elaborated upon at length in Proverbs 6:1-5.  The idea is fairly straightforward in both texts.  So, somebody asks you to lend him a hand by cosigning on a loan… what is the “Christian” thing to do?  The problem is that you like to be liked. You want to come across as a decent and generous person.  You want to be helpful.  So you cosign on the automobile, or mortgage, or student loan, or credit card offer.  And now, my friend, you have obligated yourself in regard to the other’s ability to earn, budget, and spend income.  Unless you are that individual’s mother, that’s an awkward spot to be in.  No, I take that back.  Even if you are that individual’s mother, that’s an awkward spot to be in.  You have absolutely no leverage in the situation.

NOW GUESS WHAT?

You’re on the hook if and when the person defaults on repayment.  If your name is signed on the bottom line, the creditor can and will come after you.  The FTC tells us that in as many as 3 out of 4 loans that go into default, the cosigners are asked to repay the loans.  Think about it.  When you cosign a loan, you are taking a risk which the professional lenders have refused to take.  If the borrower could meet the lender’s criteria, there would be no need for a cosigner in the first place.  http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre06.shtm

NEWSFLASH

Jesus didn’t die to make you “nice.” No, he died to make you His!  Sometimes the “Christian” thing to do is to ask, “Have you totally lost your mind?  You can’t afford that car, or house, or new TV!  Save some money for it and pay cash!”

A FIRM, WISE “NO”

In the second half of the verse we read, “And he that hateth suretiship is sure.”  Oh, the security and peace of mind enjoyed by the one who has not entered hastily into business agreements!  Years ago, First Lady Nancy Reagan, as she spearheaded a campaign against drug abuse, popularized the slogan, “Just Say No.”  The same firm “No!” might well be in order the next time someone approaches you about helping him with a loan.

Father God, thank you that when you see us, you see the righteousness of your own dear Son.  Thank you that our security and identity are in Christ.  Free us, Father, from the need to be people-pleasers to our own harm. Through Christ our Lord: Amen.    


Protecting Assets

Proverbs 27:13

13 Take his garment that is surety for a stranger, and take a pledge of him for a strange woman.
13 Get security from someone who guarantees a stranger’s debt. Get a deposit if he does it for foreigners. (NLT)

Taking a Garment

The verse today relates to the previous.

There are many dangers which we must be constantly watching out for.

Whether in business (such as banks) or personal life, we have to make sure we are not being taken advantage of in some of our dealings.

For example, suppose you have a friend who is always helping others financially, and he always asks you for help with a promise to repay. Over time you learn that he never makes good on that promise.

To help in such matters, you can ask him for something valuable as a way of urging him to repay.

This item serves as a reminder of a debt that is owed.

Reminder of the Debt

This passage has little to do with spiritual matters, but there is another debt in our lives that a constant reminder.

In Exodus 20 and Deuteronomy 5 we find a list of things called the 10 Commandments. In Romans (specifically chapter 5), Paul tells us that the Law, the 10 Commandments, was given as a reminder of our sin. It shows us how we fail to live up to loving God.

The Law shows us our debt.

Fortunately, our God has shown us grace and forgiveness. He paid our debt by sending His Son, Jesus of Nazareth, to live a perfect, sinless life and die on a cross to pay the debt we could not pay.

To receive the full grace and forgiveness He has offered us, we need only believe that Jesus is God made flesh, paid for our sins on the cross, and rose again to life and now lives with the Father awaiting the time to return and redeem His faithful.

Heavenly Father, help us to be good stewards of what You have given us. We admit we are sinners in need of grace and forgiveness. Thank You for offering that grace and forgiveness through Your Son, Jesus Christ. Give us the faith we need to live in the light of that truth every day!


Just Say “NO!”

Proverbs 11:15

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

Proverbs 11:15, 16, & 17 are connected in that each involves someone who acts with kindness, but with varied results.  In today’s verse, we consider a kindness that brings injury; in tomorrow’s, a kindness that brings honor; and in the third instance, a kindness that brings benefit.

A KINDNESS THAT BRINGS INJURY

In the first half of verse 15, we read, “He that is surety for a stranger shall smart for it,” or as the ESV reads, “Whoever puts up security for a stranger will surely suffer harm.”  Solomon returns here to a theme he has already elaborated upon at length in Proverbs 6:1-5.  The idea is fairly straightforward in both texts.  So, somebody asks you to lend him a hand by cosigning on a loan… what is the “Christian” thing to do?  The problem is that you like to be liked. You want to come across as a decent and generous person.  You want to be helpful.  So you cosign on the automobile, or mortgage, or student loan, or credit card offer.  And now, my friend, you have obligated yourself in regard to the other’s ability to earn, budget, and spend income.  Unless you are that individual’s mother, that’s an awkward spot to be in.  No, I take that back.  Even if you are that individual’s mother, that’s an awkward spot to be in.  You have absolutely no leverage in the situation.

NOW GUESS WHAT?

You’re on the hook if and when the person defaults on repayment.  If your name is signed on the bottom line, the creditor can and will come after you.  The FTC tells us that in as many as 3 out of 4 loans that go into default, the cosigners are asked to repay the loans.  Think about it.  When you cosign a loan, you are taking a risk which the professional lenders have refused to take.  If the borrower could meet the lender’s criteria, there would be no need for a cosigner in the first place.  http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre06.shtm

NEWSFLASH

Jesus didn’t die to make you “nice.” No, he died to make you His!  Sometimes the “Christian” thing to do is to ask, “Have you totally lost your mind?  You can’t afford that car, or house, or new TV!  Save some money for it and pay cash!”

A FIRM, WISE “NO”

In the second half of the verse we read, “And he that hateth suretiship is sure.”  Oh, the security and peace of mind enjoyed by the one who has not entered hastily into business agreements!  Years ago, First Lady Nancy Reagan, as she spearheaded a campaign against drug abuse, popularized the slogan, “Just Say No.”  The same firm “No!” might well be in order the next time someone approaches you about helping him with a loan.

Father God, thank you that when you see us, you see the righteousness of your own dear Son.  Thank you that our security and identity are in Christ.  Free us, Father, from the need to be people-pleasers to our own harm. Through Christ our Lord: Amen.    


Thoughts On Co-signing

Proverbs 6:1-5

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.

Practical Wisdom

When it comes to the wisdom of Proverbs, some think it’s all spiritual. Much like the person who thinks faith should be kept out of everything secular, such as politics or the workplace, these people assume biblical wisdom is incompatible with everyday life. How wrong they are!

Today’s passage is a lesson in financial wisdom. Here, Solomon is addressing the dangers of unwisely obligating one’s self to a creditor (stranger) on behalf of a friend.

Unsure Surety

There is nothing wrong with helping a friend. As a matter of fact, it was Paul who told Philemon that if Onesimus owed him anything to “put that on my account…I will repay” (Phil. 1:18-19). Helping someone out when they are truly in need, especially when you have the ability, is the right thing to do.

“If there is a poor man among your brothers in any of the towns of the land that the LORD your God is giving you, do not be hardhearted or tightfisted toward your poor brother. Rather be openhanded and freely lend him whatever he needs.” – Deuteronomy 15:7-8 NIV

However, Solomon is warning that we should be very careful when entering agreements (striking hands) on behalf of others, even our friends. You see, to be a “surety” for someone means guaranteeing the lender your friend will pay his debt. The problem comes when you end up owing what you cannot pay, therefore putting your family and your self at risk.

“Can You Co-Sign for Me?”

How many times have you been asked to co-sign on a loan? How many times have you had a brother-in-law ask for help starting a business that “can’t fail?” How many times have you felt sorry for someone, only to get burned in the end?

Many times we want to help our friends and loved ones, but end up snared by people we don’t even know. “I’ll help you this time,” we say. Then, a few months later, Hunter Loan Company is tracking us like deer.

Spiritual Application

There is a practical, yet spiritual principle to be found in the following verse: “[If] any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel” (1 Tim. 5:8). The principle is “if you can barely afford to take care of your own family, don’t make financial commitments you can’t keep.”

Solomon says that even if you have become surety for a friend, prove his friendship – get him to relieve you of your obligation. Otherwise, when the rubber check hits the road, you risk losing not only your money, but your good name, your friend, and even your faith.