The Dangers of Co-signing

      Marie wanted a new car, however her credit was poor.  At a car dealership she saw a delightful red car which immediately took her eye.  After the salesman worked out a deal with her, she decided to ask an elderly lady whom she knew to co-sign for the car.  Without hesitation, the older woman gave consent, and soon Marie was riding around in her new car.  She was able to make the payments for a few months, and then several events occurred that rendered her unable to continue making payments on the car.  The bank came and repossessed the vehicle.  Marie was embarrassed and did not communicate the message to her elderly friend that her nice red car had been repossessed.  After several attempts to collect what was owed on the car after it was sold at an auction, the bank wrote a letter to the elderly lady informing her that she was the guarantor of Marie’s loan and that she would have to pay the balance owing.  Sad to say, the elderly woman went to her grave still paying on Marie’s  debt as best she could. 

     This scenario is repeated time and time again with friends, family members and even strangers.  It is never a good policy for one person to assume the responsibility of paying another’s debt unless it is a married couple.  Being a guarantor of a person’s debt places you in the same position as owning the debt.  Co-signing has been the cause of many disagreements, loss of friendships, anger and hatred in our society. 

     This practice was frowned down upon heavily as cited in the Holy Bible.  Proverbs 6:1-5 and Proverbs 11:15 adequately gives the sound advice of not engaging in becoming security for anyone else’s debts.  It admonishes those who have done so, to refuse to go to sleep until they have reversed such arrangements.  Proverbs 11 promises that those who assume other’s debts will experience stinging remose and hurt. 

     Doesn’t it make sense that banks and lenders look for financially sound persons to help financially.  Those who have good credit have proven that they are trustworthy and have managed their money in such a way that they can be trusted.  Those who have poor credit scores have them because circumstances and sometimes attitudes  have been present which have prevented them from being good stewards of their funds or resources.  A good rule of thumb is:  If the banks can’t lend, then neither can I co-sign.  There would be no need for a co-signer were not there ample reason for securing a guarantor of a debt. 

    When approached by anyone who wants to use your good credit standing to obtain their desires, beware, and remind yourself that the risk is high that the debt will eventually fall on your shoulders.  Are you willing to assume more debt?  Are you willing to have your credit score drop because of someone else’s inability to pay their own debt?  Are you willing to hold a grudge or lose friendship because someone has left you in heavy, binding  debt?  Is it all worthy it? 

     For those who need a co-signer, it is best for them to forego their desires, save, or find another way to shoulder they own debt.  In the “now” generation, the fever to possess runs high.  We must forget the “now” and look down the road to the future.  Keep this cute saying in mind which I submit to you– “Today I borrow, and tomorrow may bring sorrow.”  It’s up to you.  Be smart and save yourself a thousand headaches so that your tomorrow will not be blended with sorrow.