MoneyWalk 155 Cosigning

This program will help you undo financial bondage.

When you’re approached by family and friends about co-signing, tell them “NO” and continue to pray for strength to be wise according to God’s Word and pray their eyes will be opened to see and act upon biblical financial principles in the future so they can receive the great benefits produced by following them.

If you've already cosigned on a loan for someone by using your credit card or by signing a note that says you'll pay the loan amount if and when he fails to do so, then you need to run to the lending institution and work on a way to get out of that arrangement as quickly as possible. If you cannot get off the loan, pray really hard that the person makes all the required payments on time and pays the debt off early. If he doesn't, you're on the hook! So, realize you will have to take over the monthly loan payments after he stops paying them.

If you don't currently have enough savings stashed away to cover the loan amount, revise your budget to eliminate unnecessary spending and increase cash flow so you can save as much as possible in case this unfortunate but highly likely scenario occurs. In the future, refuse to co-sign for anyone. Learn to say “NO” to such requests and really mean it! If there is a legitimate need that cannot be fulfilled in some other way, then give the family member or friend what you have in available cash from savings (a) that is not targeted at paying for a current or future obligation you must meet and (b) that you willingly want to give.

Many times, people that ask you to co-sign could take initiative to resolve their situation without asking you to take on their debt. However, they don’t see the picture clearly or they simply want to use a way that appears easier for them. For example, the person could get up earlier to catch the bus to work instead of asking you to co-sign for a car note. Or, the person could purchase a less expensive engagement ring for their fiancé instead of asking you to co-sign for a more expensive ring. Or, the person could rent, pay off debts, and begin to save for a 20% down payment on a home instead of asking you to co-sign on a home loan.

This lesson is not meant to discourage you from giving to meet true needs. Christians should be generous in abundantly funding gospel ministry (including helping the poor with a portion of resources available). However, scripture instructs you to stay away from promising to cover debts taken by other people when you don’t currently have far more than enough money to cover the entire debt. History shows most people, at some point not too long after you cosign, will ultimately refuse or be unable to complete their promise and commitment to paying the debt. Co-signing will set you up for a financial fall that you could have and should have avoided.

Stop cosigning for family and friends to get things they cannot afford to pay cash for. The best way to help people and ensure your long-term financial health is to give them available cash when a true and verified need arises in their lives. Then encourage them to use biblical principles to manage their money and desires and offer to walk them through the long-term process, so their future needs can be met in a reasonable manner.

Proverbs 11:15, 17:18, 20:16, Romans 13:8, Ephesians 5:15-17

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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