Cosigning a loan can seem like a kind gesture, but what does the Bible say? Today, we’ll look at Scripture’s advice on money, responsibility, and how to make wise financial decisions that honor God.
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What Does The Bible Say About Cosigning A Loan
Proverbs 22:26-27
“Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.”
This verse warns against the dangers of cosigning a loan. It cautions against making promises or putting up security for someone else’s debt, as it can lead to severe consequences if you cannot fulfill the financial obligation.
The verse emphasizes the importance of financial prudence and exercising wisdom in dealing with financial matters, reminding us that it is better to avoid cosigning a loan if we are not fully capable of meeting the repayment requirements.
Proverbs 11:15
“Whoever puts up security for a stranger will surely suffer, but whoever refuses to shake hands in pledge is safe.”
This verse reinforces the cautionary message of not cosigning a loan. It highlights the potential negative consequences that can arise from assuming financial responsibility for someone who is not trustworthy or familiar to us.
The verse encourages us to safeguard our financial well-being by refusing to pledge or put up security for strangers, emphasizing the importance of making wise decisions and considering the potential risks involved in cosigning a loan.
Proverbs 6:1-5
“My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, you have been trapped by what you said, ensnared by the words of your mouth. So, do this, my son, to free yourself, since you have fallen into your neighbor’s hands: Go—to the point of exhaustion—and give your neighbor no rest! Allow no sleep to your eyes, no slumber to your eyelids. Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.”
This passage echoes the warning against cosigning a loan and underscores the urgent need to take immediate action when finding oneself in such a situation. It uses vivid imagery to emphasize the seriousness of the matter and the importance of escaping the financial entrapment.
The verse advises decisiveness and persistence in freeing oneself from the burden of cosigning by exerting every effort to resolve the situation and disentangle from the financial obligations that were assumed on behalf of another.
Proverbs 17:18
“One who has no sense shakes hands in pledge and puts up security for a neighbor.”
This verse highlights the lack of wisdom and understanding exhibited by someone who carelessly cosigns a loan without considering the potential consequences or the trustworthiness of the individual they are vouching for.
The verse serves as a cautionary reminder for us to exercise prudence and discernment in financial matters, emphasizing the importance of employing good judgment before making any commitments that could jeopardize our own financial stability.
Proverbs 20:16
“Take the garment of one who puts up security for a stranger; hold it in pledge if it is done for an outsider.”
This verse signifies the potential loss and forfeiture of property or possessions that can occur when one cosigns a loan for an unfamiliar person. It suggests that the lender has a right to claim collateral or assets in order to enforce repayment.
The verse serves as a stark reminder of the risks involved in cosigning a loan, urging caution and prudence to avoid the potential loss of personal belongings due to another’s inability to fulfill their financial obligations.
Proverbs 27:13
“Get security from someone who puts up security for a stranger; hold it in pledge if it is done for an outsider.”
This verse advises being cautious and seeking guarantees or collateral from someone who cosigns a loan for an unfamiliar person, suggesting that adequate security should be obtained to protect oneself in such financial arrangements.
The verse underscores the importance of safeguarding one’s own interests and ensuring that proper measures are in place to reduce the potential risks associated with cosigning a loan for someone who is not well-known or trustworthy.
Proverbs 22:14
“The mouth of an adulterous woman is a deep pit; a man who is under the Lord’s wrath falls into it.”
Though this verse does not explicitly refer to cosigning a loan, it carries a broader message of caution against any entangled or risky situation. It draws a parallel between the allure of an adulterous woman and falling into a pit, highlighting the severe consequences that can arise from succumbing to temptation.
As applied to cosigning a loan, the verse can serve as a reminder to exercise caution and avoid entering into potentially perilous financial arrangements that could lead to detrimental outcomes.
Psalms 37:21
“The wicked borrow and do not repay, but the righteous give generously.”
While not explicitly addressing cosigning, this verse emphasizes the importance of integrity and righteousness in financial matters. It distinguishes between the actions of the wicked, who borrow with no intention of repaying, and the righteous, who give generously without any ulterior motives.
The verse serves as a reminder of the moral and ethical responsibilities associated with financial arrangements and encourages us to act in a manner consistent with righteousness and integrity, avoiding situations that may compromise these values.
Luke 6:34-35
“And if you lend to those from whom you expect repayment, what credit is that to you? Even sinners lend to sinners, expecting to be repaid in full. But love your enemies, do good to them, and lend to them without expecting to get anything back. Then your reward will be great, and you will be children of the Most High, because he is kind to the ungrateful and wicked.”
Although not specifically addressing cosigning, this passage conveys a broader message about lending money and generosity. It challenges the common expectation of repayment and encourages us to show love and kindness to others, even those who may not reciprocate or appreciate our actions.
The verse highlights the importance of having a selfless and compassionate attitude towards lending and financial matters, reminding us that true generosity lies in lending without expecting anything in return, thereby reflecting the character of God.
Psalm 37:26
“They are always generous and lend freely; their children will be a blessing.”
While not directly related to cosigning a loan, this verse celebrates the virtue of generosity and lending with a willing heart. It suggests that those who are consistently generous and ready to lend a helping hand will experience blessings in various aspects of their lives, including their children.
The verse serves as a reminder of the positive impact that generosity can have on both individuals and their families, and encourages us to cultivate a spirit of selflessness and openness in our financial dealings, striving to bless others through our actions.
2 Corinthians 9:7
“Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”
Though not directly referring to cosigning, this verse emphasizes the importance of willing giving and financial decisions made with a joyful heart. It encourages individuals to give according to their own convictions and not out of obligation or pressure.
The verse reminds us of the significance of approaching financial matters with a generous and cheerful spirit, reflecting God’s love and grace in our actions, and making decisions that align with our heartfelt convictions rather than external influences.
Matthew 6:24
“No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.”
Although not specific to cosigning a loan, this verse emphasizes the importance of prioritizing our commitment to God over worldly possessions and financial pursuits. It cautions against allowing money or material wealth to become a master that controls our lives and decisions.
The verse serves as a reminder of the need for a proper perspective on money and financial matters, urging us to put God first in our lives and align our priorities accordingly, recognizing that our ultimate allegiance should be to Him rather than to any worldly possessions or obligations.
1 Timothy 6:10
“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”
Though not specifically addressing cosigning, this verse highlights the dangers associated with the love of money and the pursuit of financial gain. It warns against the detrimental consequences that can arise when wealth becomes the primary focus, leading individuals to abandon their faith and experience various forms of sorrow and suffering.
The verse serves as a reminder for us to maintain a balanced perspective on money and to be cautious of the potential pitfalls that can arise when our desires for financial prosperity overshadow our spiritual well-being.
Hebrews 13:5
“Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.'”
This verse encourages believers to guard their hearts against the undue attachment or love of money. It promotes contentment with what one already possesses and relies on the assurance that God will never abandon His people.
The verse serves as a reminder to trust in God’s provision and faithfulness rather than placing excessive importance on material wealth. It encourages us to find satisfaction in the blessings we have received and to resist the temptation to pursue financial gain at the expense of our spiritual well-being.
Matthew 5:42
“Give to the one who asks you, and do not turn away from the one who wants to borrow from you.”
This verse encourages a spirit of generosity and willingness to help those in need. It instructs believers to assist others who ask for help and not to refuse those who seek to borrow from them.
The verse serves as a reminder of the importance of offering support and aid to those who are facing financial difficulties. While not specifically addressing cosigning, it reflects the value of showing compassion and extending a helping hand to those in need.
Luke 14:28
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”
While not specifically related to cosigning, this verse illustrates the importance of prudent financial planning and assessing one’s resources before embarking on any endeavor.
The verse emphasizes the need for careful consideration and wise decision-making in financial matters. It encourages individuals to evaluate their financial capacity and the feasibility of their plans before committing to any financial obligations.
1 John 3:17
“If anyone has material possessions and sees a brother or sister in need but has no pity on them, how can the love of God be in that person?”
Though not specifically addressing cosigning, this verse highlights the importance of compassion and generosity towards others in need. It challenges believers to extend help and support to those who require assistance, reflecting the love of God in their actions.
The verse serves as a reminder of our responsibility to care for the needs of those around us, encouraging us to exercise empathy and kindness towards others, including in financial matters.
James 4:13-15
“Now listen, you who say, ‘Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.’ Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, ‘If it is the Lord’s will, we will live and do this or that.'”
Though not directly addressing cosigning, this passage reminds believers of the uncertainties of life and the importance of acknowledging God’s sovereignty in all our plans and endeavors.
The verse encourages humility and the recognition of our dependence on God’s guidance and provision. It serves as a reminder to consider His will and seek His wisdom in financial decisions, including those related to cosigning a loan.
Ecclesiastes 11:1
“Ship your grain across the sea; after many days you may receive a return.”
Although not explicitly related to cosigning, this verse carries a broader message about financial investment and the potential rewards it can bring.
The verse encourages believers to exercise wisdom and take calculated risks in their financial undertakings, recognizing that there may be a time delay between the investment and the return. It highlights the prudence of diversifying one’s resources and considering long-term outcomes.
Matthew 7:12
“So in everything, do to others what you would have them do to you, for this sums up the Law and the Prophets.”
This verse, known as the Golden Rule, provides a guiding principle for how we should treat others in all aspects of life, including financial matters.
The verse encourages believers to approach financial decisions and interactions with others in a manner that reflects empathy, fairness, and respect. Although not directly addressing cosigning, it reminds us to consider how we would want others to treat us in similar circumstances.
Romans 13:8
“Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.”
This verse underscores the importance of fulfilling our financial obligations and the broader responsibility to love one another.
While not specifically addressing cosigning, it highlights the virtue of being diligent in meeting our financial commitments and stresses the significance of demonstrating love and care towards others, which can include providing financial support when needed.
Proverbs 21:17
“Whoever loves pleasure will become poor; whoever loves wine and olive oil will never be rich.”
Though not specifically related to cosigning, this verse warns against the pursuit of pleasure and indulgence without considering the long-term consequences it can have on one’s financial well-being.
The verse encourages wise financial choices and responsible decision-making, reminding us to prioritize long-term financial stability over temporary pleasures or excessive spending.