Suretyship

Dear Diary,

Day 8 of #Zip_It_40_Day_Challenge

#Shut_Down_the_Motormouth

Have you ever become a surety/guarantor for someone then the whole deal turned bad on you? Did you figure out the best way to extricate yourself from the deal? I don’t know about your experience but if you know you know, giving surety or guaranteeing performance of a financial obligation for someone can turn bad on you. Proverbs 17:18 says, “It's poor judgment to guarantee another person's debt or put up security for a friend,” (NLT).

I love the Bible because it has answers for all the issues of life. In my zip it challenge I came across this passage about giving suretyship, Proverbs 6:1-5. Note, the Bible doesn’t tell us not to help out a friend in need but it gives us a warning against imprudent and spontaneous commitments; we must be careful what we agree to and/or what we promise.

What are the consequences of becoming a surety/guarantor? If you are in a SACCO am certain a friend has approached you requesting you to be his/her guarantor for a loan. I have done that and I thank God my friends so far haven’t defaulted. I once took a loan from my SACCO and had two friends co-sign for me. I paid my loan without default. My mom did the same and she ended up paying tens of thousands because the friend defaulted. I saw the pain and distress she went through!

Prov. 6:1 warns us not to put up security for our neighbour. Surety/ Guarantor mean becoming legally responsible for the debts or default of another person. By becoming surety, you legally obligate yourself to pay the debt if the person proves unable or unwilling to do so. You simply become trapped by your words; the vow of promise you took; you agreed to be responsible; you made yourself accountable to his/her financial obligation.

Now, if you find yourself in this situation, what do you do? Look at the advice the wise man gives in v.3-4. For the sake of your well-being: with urgency go and humble yourself before your friend; plead with him/her; don’t delay until you do everything possible and appropriate to extricate yourself from the financial obligation. For my mom, unfortunately she had to pay to free herself from the debt. Her savings were swallowed just like that!

In future, consider these passages before you put a security for someone’s debt, “He who puts up security for a stranger will surely suffer, but the one who hates indebtedness is secure,” Proverbs 11:15; “Do not be one who gives pledges, who puts up security for debts,” Proverbs 22:26. Si mimi nimesema, ni Bibilia!

Regards,

NzakuNashipae