Debt makes the world go ‘round. At least it does now. Somewhere along the way in American and global history, our economic systems have moved from debt being a part of the system to debt being their foundation. If all the debt was paid off tomorrow, our system would collapse. (For a simple explanation of this, read this article.) In the spirit of keeping things moving, our government is accumulating debt at a record pace. As of February 2023, we are $31.5 trillion in debt, most held by the American government along with Japan and China holding significant amounts of our debt to prop up their currency. American citizens have joined the spending spree. Credit card debt has soared to almost $1 trillion. With citizens unwillingly (for the most part) being guarantors for the government and credit card companies encouraging borrowing while only paying the interest, borrowers feel free to spend prodigally. This is not sustainable forever, and those who back these loans willingly or unwillingly will feel the effects eventually.
On several occasions in Proverbs, Solomon warns his son, the king-in-waiting, about the foolishness of becoming surety for someone else’s debts (Pr 6.1-5; 11.15; 17.18; 20.16; 22.26-27; 27.13). Becoming surety is not loaning, borrowing, or investing money. In each of those cases, there is a possibility of a return on investment. Surety is securing someone else’s debt in a way that you take all the risk with no possibility of financial reward. Your friend wants to borrow money, doesn’t have the collateral to back up the loan, and you and your assets become collateral for the loan, the guarantee to the creditor that he will receive his money. If the friend falls on hard times or bails on his responsibility, you are left holding the bag … an empty bag.
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