Proverbs 11:15: He who is surety for a stranger will suffer for it, but one who hates being surety is secure. (NKJV)
I learned the truth of this verse the hard way. During my last quarter of college, a guy from California needed to $200 to fly home for Christmas. The foundation I worked for had a student loan fund. They agreed to loan him the money, if I would co-sign the note. I co-signed and you know what happened. He didn't return to school, and he refused to pay the $200. He had left a car in Tallahassee which was worth more than $200. He figured someone could sell the car and pay off the loan. I had graduated and moved on to another location. I was in no position to deal with the car.
After all was said and done, he still refused to pay and the foundation had my name on the dotted line. So I paid the $200. I wish I had read the book of Proverbs.
Years later a man in Mississippi came to me and asked me to co-sign with him. He thought I would say yes. But I said no!!! I sat with him and explained the Word of God to him. I told him I could not co-sign with him unless I could afford to pay the note. And at that point, I could not afford it. No is a two letter word which can save you much trouble.
Should you ever co-sign for another person? I believe that you should never co-sign for another person unless you have the willingness and the means to pay the debt in full. Say someone wants you to co-sign with them for a $1,000 loan from the bank. Do you have the money available to pay the debt? Are you willing to release the borrower of the debt, if he can't afford to pay?
Certainly most parents would be willing to co-sign on small purchases which allow their children to establish credit. But when your 22 year old wants you to co-sign on the note for the $20,000 boat, that is another story.
Learn to use that two letter word: NO! Those two letters could save you a world of trouble.
Wayne L. Williams
wayne@fotwm.org