My first source for financial instruction is the #1 best-seller, world-wide, and has been as long as records have been kept. It is a masterful piece of literature and was the only school book the early Americans had to use. If you learn from the history lessons in it, you will save yourself a lot of trouble and heartache.  The wisest man who ever lived, King Solomon, wrote three of the 66 books it contains. It’s called, “The Holy Bible”.

King Solomon wrote in Proverbs 6:1, 3, “My son, if you have become security for your neighbor…go…and humble yourself, and beg your neighbor [to pay his debt and thereby release you]. “ Amplified Bible

In the Amplified Bible Notes it says, “The Bible consistently teaches that one is not to forsake a friend, and this passage is not to be otherwise construed. But it is one thing to lend a friend money, and quite another thing to promise to pay his debts for him, if he fails to do so himself. God’s Word is very plain on the subject of not underwriting another person’s debts. (See Proverbs 11:15; 17:18; and 22:26).

We each are to rely on God as our source of everything. We are responsible to live within our means. If we do not qualify for a loan on a vehicle, we probably would not be able to keep up with the insurance, repairs and gas to run it.

When a friend co-signs a loan so we can buy the vehicle, they are not really helping us if we cannot afford to pay for everything the vehicle needs. They may be offended when they see the vehicle parked because we cannot afford a repair…after all they “helped” us get it. They may be unable to get credit for their needs because our loan is listed on their credit report as a liability.

When we co-sign a loan for a friend, we are enabling them to purchase something that is not God’s best for them.  We have all had the experience of purchasing a much-needed item and then seeing it go on sale the next day or finding a similar one for half price. Vehicles, and houses, have their prices reduced at some point and similar ones go on the market all of the time.

We have to be patient. If we cannot afford this one, we have to wait until the price is reduced, or we find a less expensive model that we can afford and maintain.

Frugal people give money, or lend money to help a friend, but they never co-sign on a loan.