To Cosign or
by HOMER
G. RHEA
Not to Cosign
I
N RESPONSE TO the statement “If of it if you possibly can! You have placed Bible does not absolutely prohibit cosign-
I had my ministry to live over, I yourself at your friend’s mercy. Now swal- ing, but if it is done at all, it should be
would . . . ,” Dr. Robert G. Lee, low your pride; go and beg to have your done rarely and very cautiously. In A Bib-
the renowned pastor of Bellevue name erased. Don’t put it off. Do it now! lical Theology of Material Possessions, Gene
Baptist Church in Memphis, Tennessee, Don’t rest until you do. Save yourself like Getz wrote: “There are times when a
wrote: “I would not sign notes for people a deer escaping from a hunter, like a bird Christian may cosign a note for another
to get money because of my signature. . . . fleeing from a net” (6:1-5, NLT). individual without violating the will of
As to ‘note signing,’ I was disobedient to “Do not co-sign another person’s God. In fact, it may be a gracious and
God’s Word, which says, ‘He that is sure- note or put up a guarantee for someone generous act of love. However, any per-
ty for a stranger shall smart for it: and he else’s loan. If you can’t pay it, even your son who guarantees a loan in this way
that hateth suretiship is sure’ (Proverbs bed will be snatched from under you” should be prepared to assume the entire
(22:26-27, NLT). loan without serious consequences.” He
These passages ad- adds as a matter of principle: “Christians
vise the cosigner about who guarantee another person’s loan
two things. First, if you based upon their own assets should make
have unwisely entan- sure they are able to repay the loan with-
gled yourself in some- out placing themselves in a position
one else’s financial where they cannot meet other financial
problems, if at all possi- obligations, including their indebtedness
ble, extricate yourself to the Lord.”
from that situation as In summary, good stewardship recom-
quickly as possible. And mends the following three principles.
second, if the debtor First, it is best not to cosign a note with
fails to pay the loan off, another. Second, if you have cosigned
and you as the cosigner and the situation is precarious, get out of
cannot pay it back, you it if at all possible. Third, if out of com-
11:15). Some may say I was softheaded or could lose everything. Even your furni- passion a Christian chooses to sign a note
grotesquely gullible. But if I had all the ture could be taken and you would be left for someone else, let that be the excep-
money I have paid on notes I signed for to sleep on the floor. tion and not the rule.
others, I would have over $10,000.” How risky is cosigning? It is done at
The person who cosigns a note great personal risk. In Free and Clear: Homer G. Rhea is the assis-
becomes legally responsible for the note. God’s Road Map to Debt-Free Living, tant director of Stewardship
The Book of Proverbs offers several pas- Howard Dayton quotes from a Federal Ministries. He has served the
sages that point out the perils of cosign- Trade Commission study which states church as pastor, as editorial
ing a note. that 50 percent of those who cosigned director of the Church of God
“My child, if you co-sign a loan for a for bank loans ended up making the pay- School of Ministry for seven and a half years,
friend or guarantee the debt of someone ments, and 75 percent of those who and as editor in chief of Church of God Pub-
you hardly know—if you have trapped cosigned for finance company loans lications for eight years. He also served as
yourself by your agreement and are ended up making the payments. president of the International Pentecostal
caught by what you said—quick, get out Most Bible scholars agree that the Press Association.
14 EVANGEL • MAR 2009
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