Comments on: Should I Cosign For a Loan? - What the bible teaches about pledging yourself for another's debt.

By: Sheila

Sheila — Fri, 06 Jan 2012 18:06:33 +0000

Funny how God works, well not really.
I was reading Proverbs 6 this morning and just last night my husband and I had a discussion about our 38yr old son….again.
Some 13 yrs ago I co-signed a student loan for him for 15k. At the time I asked him if he wanted me to manage it, or if he thought he was able…he thought he was. Second mistake!
6 months into his computer course his car broke down and he started missing classes. Instead of asking for help or fixing it, he just dropped out. At the same time, he met a gal and decided to impress her with bobbles using the remainder of the loan.
When it came time to repay the loan, he only had to pay the interest, but even that seemed to be too much for him. He went back to construction work and it can be very sporadic. Eventually the bank asked for actual monthly payments and this too was hit or miss and I have had to make a number of them.
I have tried to get my name off the loan, but as you can imagine, with his credit rating and job instability no one will touch him. So I am stuck with the payments he misses.
To add insult to injury (or our stupidity) we have given him more money on occasion to pay his rent and bills over the years. I can hear your wheels turning, we have created a monster!
Last night (after having prayed for him yesterday morning and his money issues) he calls saying he needs rent money.. that he is working and will pay it back…sigh. My husband said to ask his boss (our son-in-law ) for an advance and if he said no to call us back. This is the first time we have come even close to saying no. He didn’t call back.
He is currently living with his ex-wife (in a platonic nature) for the sake of their daughter, but he has in the past been a couch surfer and moved back home. As a mother I do not want to see him on the streets, but I’m tired of paying his way!
So, you asked for experiences….well, there’s ours!

By: Marie

Marie — Mon, 24 Oct 2011 04:55:48 +0000

This article is great and all but what if the person who needs the loan is the potential cosigner’s daughter? I asked my father to cosign for a loan so I can go to college. The last time I checked, college was not a ” frivolous, sinful” way to spend money. He told me that he wouldn’t cosign for the loan because the Bible teaches against it. Everybody else that I’ve asked to cosign has either also said no or their credit scores were too low.
I’ve tried applying for my own credit cards in order to build up my own credit but nobody wants to give me a credit card. I’m a 19 year old female trying to do something with my life and make something of myself. However, I am currently being forced to take this semester (and probably the next semester) off from school because I can’t afford it. Again, this is a good article, but where does it leave me and somebody in the same situation as I?

By: Before You Agree To Cosign A Loan…

Before You Agree To Cosign A Loan… — Mon, 01 Aug 2011 17:14:47 +0000

[...] Tony was stuck as a cosigner for an unreliable and unemployed Joe who obviously didn’t care about making his monthly [...]

By: Save Money On Car Insurance: 8 Tips To Save Big!

Save Money On Car Insurance: 8 Tips To Save Big! — Thu, 21 Jul 2011 10:59:53 +0000

[...] is. Since these costs can stay with us for the life of our vehicles (and longer, especially if we cosign a loan), here are 8 ways to save money on car [...]

By: Dan@Debt Settlement Solutions

Dan@Debt Settlement Solutions — Sat, 11 Jun 2011 11:28:41 +0000

Khaleef,
The verses in this post can actually help people that are asked to but not comfortable cosigning for a loan. This can help them to be stronger and stand up for themselves. If the person asking for a loan is upset about that, then it is probably a good thing you didn’t get on the hook for their loan in the first place.

Unfortunately I see clients all of the time who end up having to resolve debts that they were simply cosigners on and the actual borrower either skipped out on the loan or is not able to pay it. You would be surprised how many of them are actually shocked when I tell them they could be sued for the debt if they don’t resolve it.

Many consumers don’t understand to what extent they are becoming involved in the process when they cosign for someone else. They are taking the risk and are getting (typically) zero benefit out of the item being purchased.

It is best to simply make it a policy to never, never cosign a loan for anything.

By: » 5 Painless Ways To Automate Your Savings

» 5 Painless Ways To Automate Your Savings — Tue, 24 May 2011 14:52:47 +0000

[...] this only works if you have good enough credit to be given an reward card – if you need a cosigner for a loan, you probably won’t qualify for this. Also, if you have had problems with using [...]

By: Would You Put Advertising On Your House For A Free Mortgage?

Would You Put Advertising On Your House For A Free Mortgage? — Thu, 21 Apr 2011 10:16:26 +0000

[...] you kept the advertising up. I actually applied for one of these programs – since I needed a cosigner in order to get a car loan – but I was turned [...]

By: How To Increase Your Credit Score: 7 Ways That Actually Help! | Redeeming Riches

Thu, 07 Apr 2011 10:38:09 +0000

[...] I had to buy a new car in order to qualify for a loan – I actually needed a cosigner in order for everything to go [...]

By: » Financial Advice That I Wish I Listened To When I Was Younger

» Financial Advice That I Wish I Listened To When I Was Younger — Thu, 17 Feb 2011 13:39:43 +0000

[...] new one! I was only 19 years old at the time with no credit whatsoever – so I had to find a cosigner for my loan. I planned to trade in my old car for a down payment (something that had been worked [...]

By: 5 Reasons to Have an Emergency Fund | Invest It Wisely

5 Reasons to Have an Emergency Fund | Invest It Wisely — Sat, 01 Jan 2011 04:15:02 +0000

[...] [Kevin] I like this point. It takes a bit of discipline and practice to start saving up an emergency fund, and this will help to instill good habits which will help you down the road and help you to make good decisions, such as when deciding whether it’s a good idea to cosign a loan. [...]