Title

Surety Is Bad Debt

Scripture
Do not be one of those who shakes hands in a pledge, one of those who is surety for debts; if you have nothing with which to pay...
(Proverbs 22:26-27)
Devotional
Surety is another word for cosigning. To do so is to be totally responsible for the debt of another. Look at the wisdom and reasoning of this Proverb. If you are asked to cosign a note for the debt of another, you are being asked because they wish to go into debt and the lenders do not think that they have the ability to pay. Furthermore, you are 100% responsible for the debt. If the note is not paid, it goes against you as well as the first signer. Wisdom would be very careful in doing so. The only exception would be that you would be willing to pay the debt without remorse or loss of friendship.
More friendships have been lost and families put at odds over cosigning for debts than any other financial transaction. It is not only bad business; it endangers the best of relationships. Meet the needs of others as you are able, but do not enable them by cosigning for bad debt, and most debt is bad debt.
Text For The Day
Proverbs 22:26, 27: Do not be one of those who shakes hands in a pledge, one of those who is surety for debts; if you have nothing with which to pay. …
Thought For The Day
“Most of us would be willing to pay as we go if we could just finish paying for where we've been.” Ann Landers
Questions To Ponder
 
Morning Study Guide
Defining:  “Surety”: Indubitableness, “In Scripture, Christ is called ‘the surety of a better testament,’ Heb.7.22.  He undertook to make atonement for the sins of men, and thus prepare the way to deliver them from the punishment to which they had rendered themselves liable,” Webster’s 1828 Dictionary.
 
Referencing: “He who is surety for a stranger will suffer, but one who hates being surety is secure,” Proverbs 11:15.
 
Applying: Do not cosign unless you are unconditionally willing to be 100% responsible for the debt.