A close friend/relative wants to borrow money. What do you do?

[cooperthedog]

I would evaluate it on the following points, in order of importance:

0) Is the amount something you are comfortable losing?
1) Are their any personal issues (substance abuse, gambling, etc.)?
2) Are they throwing good money after bad?
3) Do you trust the person?
4) How close is the relationship?
5) Is this an anomaly or a consistent pattern of financial mismanagement?
6) What are the consequences of them not receiving the loan?
7) What is their specific plan for repayment, is it realistic, & what contigencies may hamper thier efforts?

If you do go forward, discuss the need for them to communicate openly if the loan can’t be repaid on schedule, and that it is OK if, and only if, it’s due to circumstances beyond their control (and completely unacceptable if they are putting discretionary spending before repayment).

Finally, if the sum is significant, ask for collateral. Have them sign over their vehicle(s) & draft a loan contract. If they take offense, remind them that it is only an issue if they don’t pay you back. If they still refuse, don’t lend the money.

In my opinion, friends/relatives who are *truly* in need deserve some help. If they respect you and have the means, your money will be repaid. If they lack the means, but are trying in earnest, consider the loan a gift until things turn around. If they have the means and don’t repay you, then you’ve just discovered the depth of your relationship.

[Anonymous]

Never loan money to these people.

If it’s to the point where they are trying to squeeze you for cash, that’s already a bad sign about their character and ability to handle money.

If it’s a dire emergency, that may be an exception if you value the relationship, but don’t expect to get reimbursed. Say goodbye to the money.

These days, especially in the USA, people do not place any value on honor and honesty.

Most of them have been brought up to expect instant gratification and don’t care how they get it.

That’s how this country got into its current mess and it isn’t going to change anytime soon.

Once they get what they want, paying you back will not be their priority.

Staying off your radar and concocting lame excuses will become their priority.

If it’s a family member, they won’t even have the class and dignity to stay away from you.

They’ll consider you a doormat just for being unlucky enough to be related to them.

That’s just the way it is these days.

.

[Anonymous]

Never loan money to these people.

If it’s to the point where they are trying to squeeze you for cash, that’s already a bad sign about their character and ability to handle money.

If it’s a dire emergency, that may be an exception if you value the relationship, but don’t expect to get reimbursed. Say goodbye to the money.

These days, especially in the USA, people do not place any value on honor and honesty.

Most of them have been brought up to expect instant gratification and don’t care how they get it.

That’s how this country got into its current mess and it isn’t going to change anytime soon.

Once they get what they want, paying you back will not be their priority.

Staying off your radar and concocting lame excuses will become their priority.

If it’s a family member, they won’t even have the class and dignity to stay away from you.

They’ll consider you a doormat just for being unlucky enough to be related to them.

That’s just the way it is these days.

.

[Anonymous]

Never loan money to these people.

If it’s to the point where they are trying to squeeze you for cash, that’s already a bad sign about their character and ability to handle money.

If it’s a dire emergency, that may be an exception if you value the relationship, but don’t expect to get reimbursed. Say goodbye to the money.

These days, especially in the USA, people do not place any value on honor and honesty.

Most of them have been brought up to expect instant gratification and don’t care how they get it.

That’s how this country got into its current mess and it isn’t going to change anytime soon.

Once they get what they want, paying you back will not be their priority.

Staying off your radar and concocting lame excuses will become their priority.

If it’s a family member, they won’t even have the class and dignity to stay away from you.

They’ll consider you a doormat just for being unlucky enough to be related to them.

That’s just the way it is these days.

.

[Anonymous]

Never loan money to these people.

If it’s to the point where they are trying to squeeze you for cash, that’s already a bad sign about their character and ability to handle money.

If it’s a dire emergency, that may be an exception if you value the relationship, but don’t expect to get reimbursed. Say goodbye to the money.

These days, especially in the USA, people do not place any value on honor and honesty.

Most of them have been brought up to expect instant gratification and don’t care how they get it.

That’s how this country got into its current mess and it isn’t going to change anytime soon.

Once they get what they want, paying you back will not be their priority.

Staying off your radar and concocting lame excuses will become their priority.

If it’s a family member, they won’t even have the class and dignity to stay away from you.

They’ll consider you a doormat just for being unlucky enough to be related to them.

That’s just the way it is these days.

.

[Anonymous]

Never loan money to these people.

If it’s to the point where they are trying to squeeze you for cash, that’s already a bad sign about their character and ability to handle money.

If it’s a dire emergency, that may be an exception if you value the relationship, but don’t expect to get reimbursed. Say goodbye to the money.

These days, especially in the USA, people do not place any value on honor and honesty.

Most of them have been brought up to expect instant gratification and don’t care how they get it.

That’s how this country got into its current mess and it isn’t going to change anytime soon.

Once they get what they want, paying you back will not be their priority.

Staying off your radar and concocting lame excuses will become their priority.

If it’s a family member, they won’t even have the class and dignity to stay away from you.

They’ll consider you a doormat just for being unlucky enough to be related to them.

That’s just the way it is these days.

.

[jimmyle]

Don’t do it.

I loaned a friend $1000 two years ago and he still has not paid me back yet. It is so uncomfortable to meet him now.

People should go to the banks and borrow money there.

[jimmyle]

Don’t do it.

I loaned a friend $1000 two years ago and he still has not paid me back yet. It is so uncomfortable to meet him now.

People should go to the banks and borrow money there.

[jimmyle]

Don’t do it.

I loaned a friend $1000 two years ago and he still has not paid me back yet. It is so uncomfortable to meet him now.

People should go to the banks and borrow money there.

[jimmyle]

Don’t do it.

I loaned a friend $1000 two years ago and he still has not paid me back yet. It is so uncomfortable to meet him now.

People should go to the banks and borrow money there.

[jimmyle]

Don’t do it.

I loaned a friend $1000 two years ago and he still has not paid me back yet. It is so uncomfortable to meet him now.

People should go to the banks and borrow money there.

[Anonymous]

Absolutely. Tell them to go to the bank for a loan. Or to a pawn shop

[Anonymous]

Absolutely. Tell them to go to the bank for a loan. Or to a pawn shop

[Anonymous]

Absolutely. Tell them to go to the bank for a loan. Or to a pawn shop

[Anonymous]

Absolutely. Tell them to go to the bank for a loan. Or to a pawn shop

[Author]

Posts