I didn't say it, the bible did. In the Contemporary English Version of Proverbs 17:18 it says, "It's stupid to guarantee someone else's loan." The bible could not be more right. This happens so often with relatives trying to 'help out' their family. Both the relative and the borrower think that they are responsible enough to pay off the loan. And the borrower has every intention of paying it off. The only one that knows they won't pay is the BANK! They know statistically that the borrower won't pay and they want someone to pay up for them. If you ever co-sign a loan make sure that you are willing to pay it because that's what will happen. In the end, co-signing for the loan doesn't help them. It hurts them. It allows them to get into a loan they shouldn't have had in the first place. So if the bank requires a co-signer for your loan then you should probably think twice about getting it because you can't afford it! On the other side, if someone asks you to co-sign for their loan, actually help them and refuse to do it! If you think they are good with their money and they really need what they are getting, just gift them some money. OR force them to wait and actually save the money for what they want. What a concept that we have forgotten in this debt laden culture, if we want something we should have the money to buy it! Millionaires don't pay interest, they make interest and that's what I go by.
--A Future Millionaire
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