Tag Archives: pledge

Financial snare

My son, if you have put up security for your neighbor,
if you have shaken hands in pledge for a stranger,
you have been trapped by what you said,
ensnared by the words of your mouth.
So do this, my son, to free yourself,
since you have fallen into your neighbor’s hands:
Proverbs 6:1-3a

It is common practice in the world of banking that when an individual or institution does not meet the minimum criteria required to be worthy of a loan, it is accepted that other person or institution with better credentials act as guarantor for the first one. This happens quite often during the early years of marriage, when parents sometimes must act as guarantors for their children because they still lack the necessary credit merits to receive a loan from a financial institution. One thing is to come out in support of a close relative and another is to commit to pay a debt of a third-party that fails in its obligations. The word of God is very clear about it. He who does this immediately becomes a victim trapped by the snares of the hunter. Maybe you decided to be a guarantor out of a good heart but be aware that we have a duty to God and to our family of wisely managing our family financial resources with which God has blessed us. Good credit is a powerful financial resource and to use it without a sound understanding of the consequences is simply poor financial stewardship.

Avoid, therefore, to commit yourself to respond for the debts that others cannot pay and if by chance you find yourself in that situation do everything necessary to break that foolish commitment because to do otherwise will lead you to ruin and financial bondage. Do not let time pass or it will be harder for you to get out of the problem. Act diligently and immediately get rid of that unnecessary responsibility. Pay attention to the advice that the word of God gives. You’ll be wiser and it will keep you out of trouble. Only to God be the glory!

Financial prudence

Take the garment of one who puts up security for a stranger;
hold it in pledge if it is done for an outsider.
Proverbs 27:13

In theory every child of God should be a financial expert. The Bible makes numerous references about money and how to manage it, so that everyone who heeds its advice should know thoroughly how to manage their finances. The word of God teaches us not only how to manage our money but also how to conduct business with third parties. Well, we know that in reality the money is not ours but that we are stewards and managers of the funds God has entrusted to us. In the particular case of today’s portion, the word of God warns us about people who act foolishly with their business and either through ignorance or immorality commit reckless actions with their money.

We must be careful when selecting with whom we associate or deal financially. If the person that proposes a deal is a person of questionable morality we must discard that deal and start looking for another business. If we ignore these warnings it is likely that we will end up losing our share of the investment. In order for us to be successful with personal finances they should be handled with prudence and wisdom. If we follow exactly the instructions of the word of God we will avoid getting into financial entanglements of any kind. To God alone be the glory!