MoneyWalk 141 Cosigning Is Not Helpful

This program will help you undo financial bondage.

Cosigning is contractually agreeing to pay the amount of money another person borrows when he does not meet the obligation to make required payments. Allowing other people to use your credit accounts to make purchases is similar. Most people who could not pay cash for what they wanted or who did not have good credit history necessary to borrow money on their own to make the purchase have not had the responsible nature necessary to show they are a good credit risk. Banks have systems to measure payment risk to determine when it’s worthwhile to loan people money. We do not have such systems and should take heed and refuse to cosign loans for people who could not get loans from bankers to make purchases they desire.

Many of the people asking you to cosign will continue to be financially irresponsible and impatient in pursuing desires and in other financial dealings. Some may be well-meaning up front, but shortly thereafter will stop making agreed upon payments. Then, you will (a) be required to make the remaining payments for their purchases, (b) risk ruining your credit history when you cannot pay, and (c) be thrust into a bad financial situation. Unless you have the money to cover the purchase and want to give it to them, agreeing to cosign for another person’s borrowing will almost always cause you to be the one paying the bill at some point down the road.

Cosigning encourages family and friends to remain financially irresponsible and untrustworthy. Refusing to cosign doesn’t mean along the path of life you should not help people. Feed the hungry, clothe the naked, help find shelter for the homeless, and invest in worthwhile business endeavors for start-up entrepreneurs. However, there are many resources in your cupboards, closets, and community that can help with such endeavors. When someone cannot afford to purchase a material thing desired (unneeded product or service), then he should not have it at that time via debt on your record. Be an example of one who trusts God and works to earn income to meet needs and obtain desires without causing anyone to take on debt. If the Holy Spirit is inspiring you to help, then give available cash in an amount that will not cause you to be an infidel who cannot care for your own household. Otherwise, you are not in a position to help and you definitely don’t want to cast your pearls to swine. Never waste resources entrusted to you on people who willfully disregard biblical instruction on good stewardship. Regardless, of what you do for them they will continuously and irresponsibly spend and make poor financial decisions that continue their poverty mentality and position.

Watch, pray, and observe people to find out how you should help or instruct those who ask you to cosign. The devil constantly encourages you to mismanage money, so you are unable to give greatly to fulfill the Great Commission via (a) prudently providing for family, (b) maintaining and enhancing local church outreach and discipleship ministry, (c) and funding missions nationally and globally. Many people don’t realize they’re being used by the devil to thwart the gospel. Don’t condemn them, just don’t give in to the enemy’s plan for money God entrusts to you. Immediately discontinue cosigning and pray that those who ask you to cosign will allow the Holy Spirit to guide them in using biblical money management principles, so they can meet their God-given responsibilities.

Proverbs 11:15, 17:18, 20:16, Romans 13:8, Ephesians 5:15-16, 2 Thessalonians 3:12-15

Please pray for this ministry and email questions to parlor@ameritech.net and share the links below with others who need guidance. May the LORD bless you richly as you follow His plan!

Share http://kminfo.org/ministries/financial-freedom weekly with family and friends so these bondage-breaking articles and other financial information can help them gain helpful insight!

The book at the link below provides principles and practical steps that help you use the Power To Get Wealth. By 1992, we had $135,000 of debt and a negative $35,000 net worth. Financial bondage and turmoil led me to seek principles and a process for employing good stewardship. As a result, we became constructively debt-free in 1998, mortgage free January 2004, millionaires in 2012, multi-millionaires shortly thereafter, and retired in 2018 in my mid-fifties from public servant jobs while giving abundantly to fund the gospel of our LORD Jesus Christ. The same power is available to you!

https://www.amazon.com/Power-Get-Wealth-Randy-Parlor-ebook/dp/B08QCH5MVH/ref=sr_1_2?keywords=Randy+Parlor&qid=1638336718&s=books&sr=1-2

You can find books authored by Randy and Karen Parlor at www.Amazon.com.

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