Should you lend your hard-earned money to friends or family?

Refusing a loan application from friends and family is probably as delicate as lending the money and not getting it back. This is because there is a lot of emotion attached to the topic!

If you say No correctly when your friend or family member is in a very difficult situation, they may perceive you as soulless and your relationship may be spoiled for life.

On the other hand, if you hand over the money, both your relationship and your finances will be in jeopardy if you don’t get it back.

Therefore, I prefer to sit on the fence in this one. There is no crime in offering a fraction of what is requested as long as you can afford to lose the amount offered, and if you can afford to lose the full sum requested by your friend or family member, do not be too quick to offer it as a gift, as they might be willing. to return it later.

In cases where the borrowing party has collected several of these loans in the past but has not repaid them, you are in a compromised position. In such a situation, you must make them understand that there will be no more loans, if the loan is not repaid. With this condition attached to the loan, they will likely work to pay off the loan or never return.

In general, I think it is safe to sit on the fence. Don’t say a resounding NO and don’t give up what you can’t afford to lose. However, if you are one of those who share the school of thought that it is illogical to give loans to family and friends, you should read this comment that I stumbled upon:

“If a friend was in dire straits and needed help, and I could help them, I sure would, without question. If you’re going to haggle over payment options and finance charges with friends or family, well, no you’re being a true friend. I just hope that if you go through tough times, you still have friends or family who aren’t as tight-fisted as you are. “