Comment by tonytran2015: This part of Proverbs 6 should be taught in every school as part of economics and financial literacy.
New International Version
Warnings Against Folly [on financial responsibility]
1My son, if you have put up security for your neighbor,
if you have shaken hands in pledge for a stranger,
2you have been trapped by what you said,
ensnared by the words of your mouth.
3So do this, my son, to free yourself,
since you have fallen into your neighbor’s hands:
Go—to the point of exhaustion—
and give your neighbor no rest!
4Allow no sleep to your eyes,
no slumber to your eyelids.
5Free yourself, like a gazelle from the hand of the hunter,
like a bird from the snare of the fowler.
6Go to the ant, you sluggard;
consider its ways and be wise!
7It has no commander,
no overseer or ruler,
8yet it stores its provisions in summer
and gathers its food at harvest.
9How long will you lie there, you sluggard?
When will you get up from your sleep?
10A little sleep, a little slumber,
a little folding of the hands to rest—
11and poverty will come on you like a thief
and scarcity like an armed man.
12A troublemaker and a villain,
who goes about with a corrupt mouth,
13who winks maliciously with his eye,
signals with his feet
and motions with his fingers,
14who plots evil with deceit in his heart—
he always stirs up conflict.
15Therefore disaster will overtake him in an instant;
he will suddenly be destroyed—without remedy.
16There are six things the Lord hates,
seven that are detestable to him:
a lying tongue,
hands that shed innocent blood,
18a heart that devises wicked schemes,
feet that are quick to rush into evil,
19a false witness who pours out lies
and a person who stirs up conflict in the community.
In simpler terms
26 Don’t agree to guarantee another person’s debt or put up security for someone else.
27 If you can’t pay it, even your bed will be snatched from under you.
The following advice is from Australian Government:
If you guarantee a loan for a family member or friend, you’re known as
the guarantor. You are responsible for paying back the entire loan if
the borrower can’t.
Actually it can be worse than that. The lender can even start recovering money from the guarantor without going for the money of the borrower.