That goes for family too and not just friends. I have fallen out with people owing money to me. I would rather give it to them instead of expecting for them to pay me back. I would only give money if they really need it.
I agree with this. I think that lending a small amount is always good but going for higher amounts is just not in your best interest. We never know if the person is going to pay back 100% so taking that big risk is just not worth doing unless that is the truest friend that you have. I just would hate to see the person making excuses about paying me back. I just wouldn't be able to handle it.
It really depends on who you would lend the money too. I have friends who I can really trust to pay me back the money they owe me, but I also have friends who I'm hesitant to lend any money. If he/she really needs the money then I can only give what I can and not everything he/she asks.
My brother and his friend 'loaned' a substantial sum to another friend and it ended their relationship. The receiver didn't bother to pay the money back and a l5-year long friendship was ruined as a consequence. This has made me wary about loaning to anyone.
As taught by my parents, I should opt to give, rather than lend. At least, when you dole out the money to a friend in need, you are not compromising the friendship in case your friend will not be able to pay you back.
Lending money to friends or family is a disaster. Being in business with a relative is even more dangerous than lending money to them. I am a victim of such blind trust to friends and relatives because I had been too soft to people that I started loaning them money whenever they were in need. I would cash someone's money from PayPal instead of having to wait for 3 days for it to clear, of course at a fee. However, I never knew my friends were involved in some shady deals that would jeopardize my PayPal account when a client had disputed payment. The guy simply refused to refund me the money I had to refund to his client on the basis that I did not make the right decision when refunding that client. We had agreed about the matter that he would refund me only for him to say no later and even started blaming me. As for the other one, I loaned him some cash for something he was to do urgently because there were delays in receiving his income. Little did I know that It would take over 4 months for him to even recognize that I had loaned Him money. I kept on reminding him even when he was paid that income. To my surprise, he went ahead and bought a smartphone with the money he was supposed to pay me. I learned my lesson from that day. Am just waiting for the day he will pay me. He will never see my cent even when he certainly is in dire need.!
If you loan money out to someone ask yourself, "if they don't every pay me back will it ruin our friendship or not?" If my answer is "yes" it will then I don't loan the money out.
I watched an episode on Suze Orman some years ago where she was advising someone to NEVER loan money to family or friends since lending money to family or friends who never re-pay the loan can break up relationships. She advises that persons give money to family or friends rather than lend money to them.
I lent money to a friend and paid dearly for it. She was a good friend and she said.she would pay me back, but I have yet to get my money back. I had good intentions and I trusted her to pay me back, but she basically came up with excuses and I never got my money. I have lost contact with her so I guess I won't ever get my money back.
This is some great advice. I however, have usually been on the other end of this situation. Yes it usually does become bothersome that the answer is usually no. I must tell you that it usually is the right answer. I am so glad it so many people have told me know in my life.
It really depends on the case and on the friend. The typical answer would have to be no, it's not wise to mix business with family/friends, but if it is a really close friend in who you trust, so that's what friends are for, but depending on the circumstance...
Lending or borrowing love money either from family or friends is never recommended. We tend to believe that people who is close to us will lend a helping hand when we are in need of money, as we may also think that being friends or relatives will guarantee someone will repay. But the true fact is that many times family stop talking one to another and friendships are lost because of getting money involved in one's relationship. If someone ask your for money and he or she doesn't pay, you accrue hard feelings against that person, and same happens when you try to borrow money with the confidence your friend will never fail to help you and he or she doesn't do it, even if the reason is because finances of such friend doesn't allow lending money. This is a rather hard topic to handle.
I would absolutely help a friend in need and I wouldn't expect it back. If they need to borrow money, then paying me back will likely just be another burden to keep them in the hole whereas, I'd rather my money go to helping them stay out of it.
I grew up poor so i know what its like to not have the money for something. I also overcame it so i know its a matter of personal choices one makes, and that it IS possible to not always be poor or broke. With that said, everyone gets ONE chance. In other words, everyone start out with perfect credit with me. If someone is in need, i consult with my fiancé, and we usually agree to help if we can. We normally dont hound anyone for the money back, but ask that they keep the time frame they usually propose. If everything gets paid back when promised, the person continues to have good credit with us. If it doesn't get paid back reasonably within the time frame promised, they get until the next tax season. If they STILL havent paid us back and we see that they're spending money on crap, they are cut off. I've only had to cut one family member off, but i would not hesitate to cut another off. Like i said, i grew up poor so i know its hard to live with no money. I also know that growing up i blew alot of money on useless crap. Once i changed those habits, i started having more money to spend on important things. Eventually all your bills get caught up and you even have money to put away! Soon enough you have enough where you can lend and can afford charge it to the game if you take a loss. However, it irks me when people act like youre being a bad person for not lending to "people in need" when those people have wasted money on things you KNOW they dont need. Usually what a person buys is noones business but the person who buys it. However, when im being asked to lend some of MY money, it becomes my business. Anyway, TL;DR yes i lend money once. If i get it back in a reasonable time i continue to lend. I try to never borrow and am fortunate enough that i haven't needed to in a very long time.
I personally don't loan money to my friends unless there's really an emergency. I think loaning money to friends would cause a gap between us because it will destroy our friendship. I think it's true that loaning money to my parents will cause a gap between us because I don't expect them to pay me back, so I would just give them the money but minus the 'loan' word. That way, I can be called that as a support because I don't really like the sound of loaning money at all. I would rather help them out as long as they have the reason for it.
If you can, you never should lend money to friends. Money has a way of changing people. Maybe once they've spent it they realize that they didn't get what they wanted [some kind of lasting satisfaction?] I'd rather not try to rationalize it. Better not lend to friends but if you must then don't expect repayment. That would at least salvage your friendship if it's important to you.
Yes, I don't mind loaning some money to a friend (or other relatives), but it has to be for a valid reason, emergency and he/she is willing to sign a note acknowledging that it is a loan and not a gift )) Any thing borrowed must be returned. This doesn't apply to my immediate family members (my blood brothers / sisters).
