DAY 11 Co-signing Loans

“There’s danger in putting up security for a stranger’s debt; it’s safer not to guarantee another person’s debt.” (Proverbs 11:15 NLT)

The Bible has much to say about money and wisdom for how to work for it, how to spend it, and how not to spend it. Today’s selected verse teaches us not to cosign loans. You may have had someone ask, “Would you co-sign a small loan for me?” They may have even explained that you would not have to pay a cent; just sign a piece of paper; “It’s a favor,” they say. But the Bible teaches that this is not safe.

Why is it unsafe to cosign a loan for someone, even a friend or family member? Because by becoming a cosigner you are now assuming another person’s debt. If that friend or family member fails to pay their debt you will be forced to assume responsibility for that debt as if it were your own.

In an article on this subject Christian money expert Dave Ramsey writes:

The lender requires a cosigner because there is a very high statistical chance that the applicant won't pay. So why do we appoint ourselves as the generous, all-knowing, benevolent helper to override the judgment of an industry that is foaming at the mouth to lend money, and yet has deemed your friend or relative a deadbeat looking for a place to fail, or at least a loan default looking for a new home? Why do we cosign knowing full well the inherent problems?
We enter this ridiculous situation only on emotion. Intellect could not take us on this ride. We "know" they will pay because we "know" them. Wrong. Parents cosign for a young couple to buy a home. Why do they need a cosigner? Because they couldn't afford the home! Parents cosign for a teenager to buy a car. Why would parents do this? "So he can learn to be responsible." No, what the teenager has learned is: if you can't pay for something, buy it anyway.

There was a man who went to the mall with one of his buddies. When they got there, he took out his debit card and handed it to his friend along with a note including his pin number. “Spend as much as you like, it’s on me.” Would anyone ever think of doing such a thing? That is exactly what you are doing if you co-sign a loan for someone else.  You are committing all of your wealth to whatever debt that person is assuming (his debt has become yours).

Jesus taught us to ask the Father to “give us this day our daily bread.” He taught us to ask God to provide for our personal needs. I believe God will meet our financial needs as we live wisely and within the parameters of His Word. This does not include taking on unnecessary debt, including that of close friends or family members.

May we be wise today with the money the LORD has given us and the credit we have earned.

Proverbs Chapter 9-Wisdom's Invitation

DAY 9

“[Lady Wisdom says…]Come, eat my food, and drink the wine I have mixed.” (Proverbs 9:5 NLT)

Lady Wisdom is further described in chapter 9 (1-12) and contrasted with Lady Folly (13-18). Notice how similar Lady Wisdom’s offer sounds to what has been called “God’s Banquet Call” in Isaiah 55:1; “Is anyone thirsty? Come and drink-even if you have no money! Come take your choice of wine or milk-it’s all free!”

We are invited by God to partake of good things. Food and beverage are some of the items most associated in our minds with blessing from the Lord. I think that is why Jesus compared Himself to the bread from Heaven of Moses’ day.

The crowd asked Jesus, “Show us a miraculous sign if you want us to believe in you. What can you do? After all our ancestors ate manna while they journeyed through the wilderness! The Scriptures say, ‘Moses gave them bread from heaven to eat.’” (John 6:30-31).

Jesus responded to them by saying, “I tell you the truth, Moses didn’t give you bread from heaven. My Father did. And now He offers you the true bread from heaven. The true bread of God is the one who comes down from heaven and gives life to the world.”

The crowd did not seem to fully understand and they answered, “Sir…give us that bread every day.” “Jesus replied, ‘I am the bread of life. Whoever comes to me will never be hungry again. Whoever believes in me will never be thirsty.” (vss.32-35)

Jesus compares our deep need of salvation to our hunger and thirst-these are very real feelings that we experience daily. Jesus said that coming to Him (by repentance the Bible teaches, Acts 2:38) will satisfy our spiritual hunger and by believing in Him (that is faith, Romans 10:9,10) we will satisfy our spiritual thirst. This is ceratinly for people who have never trusted Christ as Savior but it is also for the believer to constantly come to Jesus turning from sin and believing in Him on a continual basis (reference).

“But to those called by God to salvation, both Jews and Gentiles, Christ is the power of God and the wisdom of God.” (1 Corinthians 1:24)