Never Co-Sign for Another’s Debt!

“My child, if you have put up security for a friend’s debt or agreed to guarantee the debt of a stranger— if you have trapped yourself by your agreement and are caught by what you said—follow my advice and save yourself, for you have placed yourself at your friend’s mercy. Now swallow your pride; go and beg to have your name erased. Don’t put it off; do it now! Don’t rest until you do. Save yourself like a gazelle escaping from a hunter, like a bird fleeing from a net.” (Prov. 6:1-5 NLT)

My Answer Is Always No

Over the years, several friends have asked me to co-sign for them. My answer has always been no. The reason is simple: the Bible makes it very clear that you should never co-sign for anyone! And quite frankly, there are many practical reasons not to co-sign.

Here are just a few:

1. Co-signing means taking on full responsibility if the loan isn’t repaid.

Remember, the person asking you to co-sign was already considered a credit risk. That’s why the lender wouldn’t approve the loan without someone else—someone with better credit and assets—to guarantee it.

2. You are agreeing to repay the entire loan if they default.

Even missing a single payment can trigger the lender to come after you—the co-signer—for the full remaining balance. You are 100% liable for any loan you co-sign.

3. Co-signing can negatively affect your own credit.

It could also disqualify you from getting a loan for your own needs in the future. Your credit usage and debt-to-income ratio are both impacted the moment you co-sign.

4. If you can’t afford to give them the money outright, you certainly can’t afford to co-sign.

It’s just not worth the risk!

Therefore

If you truly want to help someone and you can afford to do so, give them a gift—don’t sign for their debt. The Bible promises a blessing to those who give.

“Give, and it will be given to you. Good measure, pressed down, shaken together, running over, will be put into your lap. For with the measure you use it will be measured back to you.” (Luke 6:38 ESV)