Book: Proverbs 6
“My child, if you have put up security for a friend’s debt or agreed to guarantee the debt of a stranger… go and beg to have your name erased.”
I met a person who said to me that he never lends out his books but sometimes gives them away. His attitude is that people borrow things and they often do not return them or return them in the condition they received them. Therefore, by giving a book away he no longer has any expectation of receiving the book back. He is the giver and they are the receiver instead of creating a lender and borrower relationship.
The wisdom found in the first 5 verses of Proverbs 6 is do not guarantee, put up security, or co-sign for someone you know or do not know and if you have already, do every thing possible to get it reversed. Note that it covers everyone from family/friends/employees to those you do not know. There are good reasons why a lender is unwilling to loan funds to the person needing a co-signer. To not follow this wisdom is to have already decided that you are going to pay the whole loan back yourself. Therefore you are better to give the person the money up front and move on. If you are not willing to give the funds upfront then you should never co-sign.
I have seen situations where seniors have co-signed for their children with the result the parents, instead of being able to do things they have planned and wanted to do in their retirement, have had to use those funds to pay back the loan.
Take time with the Lord and commit to Him to follow His wisdom in all aspects of your life including your finances.