Cosigning on a debt for someone else by signing a contract that says you'll pay the loan amount if he does not pay or by using your credit accounts to cover the person's indebtedness will cause you to lose money almost every time while he continues to be irresponsible and impatient in taking care of his needs and pursuing his desires and other financial dealings (Proverbs 11:15).
If your family member, friend, or acquaintance cannot afford to purchase the material thing he desires, then he shouldn't have it at this time. He should learn to provide his own desires (items that are beyond his needs) on the income he receives (Proverbs 17:18). In addition, he should learn to provide his own needs except when, through no fault of his own (catastrophe or emergency), he is in a temporary position of having no food or shelter or other true necessity (such as transportation to and from work, clothing, or medicine).
You don't often really help people when you cosign for them because it allows them to sidestep building their own financial acumen and responsibility and it often encourages them to remain financially irresponsible and untrustworthy in this area. This doesn't mean that along your path of life you won't help some family, friends, or others with gifts of money to meet needs and some desires. However, you should not do it until you're in a position of financial responsibility and able to do it without cosigning a loan or using your credit accounts. In other words, you should only use cash you have available and that you want to give the person that is not needed to pay your own bills when they are due (Proverbs 20:16). Otherwise, you'll be placed in a tight financial situation that will inevitably cause you to be irresponsible and untrustworthy in taking care of your family and God's business.
Watch, pray, and observe people who solicit the use of your credit accounts and signature on loan contracts that benefit them. You see, the devil is constantly searching for a way to encourage you to mismanage money so it's of no great use in helping fulfill the Great Commission via prudently providing for your family, giving to maintain and enhance your local church outreach and discipleship ministry, and giving to fund missions work through other people who are in places you cannot physically reach). Sometimes, the people don't realize they're being used by the devil in this way, so don't condemn them, just don't give in to the enemy's plan to abscond with money God entrusted to you (Romans 13:8).
Again, the best way to help others and ensure that you're not an infidel who doesn't appropriately provide for his family is to give them available cash or resources when a true need exists. Discontinue cosigning loan contracts and pray that they allow the Holy Spirit to guide them in using biblical money management principles, so they can provide their own needs and godly desires in the future. One of the great things you can do for them is share God's plan for them to live within their means, budget their income to meet the highest priorities, stay out of debt, appropriately plan in order to live debt-free in the near future, and build their financial acumen to the point where they can save an ample emergency fund and build an investment portfolio that will help provide needs and many desires throughout the remainder of their lives on earth (Ephesians 5:15).
May God bless you richly as you follow His plan!
