Thursday, May 28, 2009


Making Sound Financial Decisions

(Prov 11:15 TNIV) Whoever puts up security for a stranger will surely suffer, but whoever refuses to shake hands in pledge is safe.

This morning we continue our series, In this verse Solomon contrasts those that blindly enter into a binding agreement to cover the debt of a stranger, with those who wisely refuse to do so.

The translation I chose uses the word, “security.” The King James Version uses the word, “surety.” We were first introduced to this term in Proverbs 6:1. A surety is a person who agrees to be responsible for the debt or obligation of another. In today’s language this would be considered a co-signer on a loan. Solomon is basically warning us against co-signing on a loan for a stranger.

Solomon was an astute businessman. He ran a nation with a multi-billion dollar surplus. During his time the Phoenicians developed a new system of credit. Credit was not a new concept, but to this point is relatively fair and it was offered at reasonable interest.

What the Phoenicians established was credit with unusually high interest. This caused several people to be locked into bad deals. Let me pause here long enough to say that there is nothing new under the sun. Biblical wisdom stands the test of time. What President Obama is attempting to address today with the Credit Card industry is nothing new. For thousands of years people have been conducting commerce and using credit. Credit – in and of itself – is not a bad thing, but it can become a bad thing if not managed correctly.

Solomon warned his readers (believers) to avoid putting their good name on a bad loan; especially for someone they just met.

So what does this mean? It means that Solomon’s counsel is good advice on many levels, because:

1. You don’t know the person. You don’t know if this person is of solid character, if they will make good on their promise to pay, or if they even have the intention of paying. Why would you obligate yourself to a binding agreement FOR someone you just met?

2. Failing to pay is NOT an option. Solomon tells us that the person that refuses to make the pledge is safe. For the believer the word, “pledge” is a serious thing. You are putting your name on the line. You are giving your Word that if this person fails to pay, that you WILL; and as a believer, you are bound to do so.

A person of poor character and deceitful intent may enter into a loan without the intentions of paying, but you MUST never do so. Your word has to be your bond. We are expected by God to meet every obligation. That is why we must “Count the cost” (see Luke 14:28-30) before we enter into a binding agreement. So think things through, prayer over them, and make sound decisions.

Your family can be affected. You have an obligation to God and to your family to manage your finances well. Making a poor decision like this can put your family at risk. That is why prayer is so important. Many people make foolish decisions then say things like, “God, why did you let this happen to me?” No! Don’t blame God. He is not obligated to bless your mess.

So be very careful what obligations you take on. There is a difference between being generous and making a poor decision. Don’t allow your emotions to take you where your bank account can’t keep you. This is great advice in today’s credit-laden society.

Father, I thank You for providing me sound counsel through Your Word and by Your Spirit. You lead me in the way that I should go. I declare, by faith, that everything decision I make is a decision that is birthed out of my prayer life. I make decisions that line up with Your counsel. I am a blessing to others and I give to those in need. However, I am led in my giving. I don’t overextend myself and I don’t endanger my family by making poor decisions. You lead me in the area of my finances and in every area of my life. I pray, I think things through, I count the cost, and I make sound financial decisions – BY FAITH! In Jesus’ name. Amen!

No comments:

Post a Comment