Things to Consider Before Lending Money to Family and Friends

Things to Consider Before Lending Money to Family and Friends
Share This:

Should you loan money to friend or family member? It’s a complicated subject. While it’s natural to want to help the people in your life, loaning money has the potential to destroy relationships. Refusing to lend money can be hard on a relationship, too. There are no easy answers.

Think carefully before loaning money to family and friends:

1. Only loan what you can afford to lose. The grim reality is that you might never see your money again. You can minimize the pain of default by only loaning what you can afford to lose.

  • Even the most responsible of your friends and family can default under unfortunate circumstances. Be prepared for the worst.

2. Offer help instead of money. In most cases, providing money only addresses the symptom of a greater problem. Whatever lead to the financial hardship will still be present. Most personal loans aren’t repaid and hard feelings are the result. Instead, offer to help make a budget, find employment, or give advice. Keep your checkbook in your pocket.


3. Put everything in writing. Spell out the terms of the loan, including the amount and the repayment details. Putting both your names on the dotted line will help to motivate your borrower to make timely payments.

  • For large amounts, consider using a lawyer to draft the final agreement.

4. Consider how the rest of your family and friends might react. Have you turned down others for loans in the past? What will those people think if you’re willing to loan money to someone else? Will your loan be viewed as enabling bad behavior, such as poor spending habits or refusal to get a job?

5. Stick to cash. Avoid cosigning a loan or a credit card. The poor payment behavior of the borrower could have a negative impact on your credit and ability to borrow in the future.

  • Also avoid converting other investments to cash. Keep your loan limited to cash that you already have on hand.

6. What will you do if they default? Will you ask for collateral? Are you willing to take the borrower to court? Will you end the relationship? Have a plan for how you’ll handle non-payment.

7. Charge interest. Charging interest will help to keep your borrower honest. The situation feels more formal and serious if interest is charged. You’ll also feel better about your money working for you. Charging interest can also avoid being charged with a gift tax. Talk to your tax professional.
8.Talk to your partner. Before lending money to anyone, ask for the blessing of your partner. People have differing opinions about loaning money to family members and friends.

  • The last thing you want to do is create friction at home. You could be straining your finances and your relationship.

9. Be able to say “no.” You have a good idea whether or not the borrower is ever going to pay you back. There are times when saying “no” is the only reasonable course of action. Avoid being afraid to refuse requests for money. Follow your gut.

The decision to lend money to a friend or family member is a personal one. Financial experts have a wide range of opinions on the subject. Avoid lending money you can’t afford to lose.  Remember that you can always offer to help in other ways.

Consider the ramifications of loaning money to someone you know well. The potential to ruin a relationship exists. For the best outcomes, always tread carefully and make the wisest decision you can.

Share This:

1,012 Comments

  1. Mobile Phone Monitoring App – hidden tracking app that secretly records location, SMS, call audio, WhatsApp, Facebook, Viber, camera, internet activity. Monitor everything that happens in mobile phone, and track phone anytime, anywhere. https://www.mycellspy.com/

    Reply
  2. pharmacies in mexico that ship to usa: cmq pharma – mexican drugstore online

    Reply
  3. reputable mexican pharmacies online
    http://cmqpharma.com/# mexican drugstore online
    medicine in mexico pharmacies

    Reply
  4. indianpharmacy com indian pharmacy reputable indian pharmacies

    Reply
  5. reputable mexican pharmacies online: mexican rx online – mexico pharmacy

    Reply
  6. online shopping pharmacy india: indian pharmacy – india online pharmacy

    Reply
  7. paxlovid for sale: п»їpaxlovid – Paxlovid buy online

    Reply
  8. buy cipro online canada: ciprofloxacin – ciprofloxacin generic price

    Reply
  9. buy cipro online without prescription: buy cipro – buy cipro online canada

    Reply
  10. pharmacies in mexico that ship to usa mexico pharmacy mexican pharmacy

    Reply
  11. mexico pharmacy mexican pharmacy medicine in mexico pharmacies

    Reply
  12. mexican pharmaceuticals online mexico pharmacy mexican online pharmacies prescription drugs

    Reply
  13. zithromax 500 mg lowest price pharmacy online: zithromax cost canada – buy generic zithromax no prescription

    Reply
  14. how to lose weight on tamoxifen: tamoxifen citrate – tamoxifen lawsuit

    Reply
  15. what happens when you stop taking tamoxifen: tamoxifen for sale – tamoxifen for men

    Reply
  16. prednisone 30 mg tablet: prednisone daily use – prednisone brand name india

    Reply
  17. Abortion pills online: purchase cytotec – order cytotec online

    Reply
  18. viagra generico recensioni: viagra generico – viagra naturale

    Reply
  19. top farmacia online: kamagra gel prezzo – migliori farmacie online 2024

    Reply
  20. farmacie online affidabili: Avanafil compresse – farmaci senza ricetta elenco

    Reply
  21. comprare farmaci online con ricetta: Avanafil prezzo – farmaci senza ricetta elenco

    Reply
  22. le migliori pillole per l’erezione: viagra prezzo – viagra 100 mg prezzo in farmacia

    Reply
  23. farmacie online autorizzate elenco: kamagra gel – farmacia online senza ricetta

    Reply
  24. cialis dapoxetine overnight shipment: Buy Tadalafil 20mg – cialis online nz

    Reply
  25. mexican pharmaceuticals online: Medicines Mexico – mexican online pharmacies prescription drugs

    Reply
  26. online pharmacy india: indian pharmacy – buy medicines online in india

    Reply
  27. mexican pharmaceuticals online: Medicines Mexico – buying prescription drugs in mexico

    Reply
  28. buying prescription drugs in mexico online: mexican pharmacy – mexico drug stores pharmacies

    Reply
  29. buying prescription drugs in mexico online: Certified Mexican pharmacy – mexico pharmacies prescription drugs

    Reply
  30. brand name lipitor: buy lipitor 20mg – cost of generic lipitor

    Reply
  31. п»їcytotec pills online https://tamoxifen.bid/# who should take tamoxifen
    lasix furosemide

    Reply
  32. where can i get lisinopril cheap lisinopril drug prices lisinopril

    Reply
  33. buy lisinopril without prescription: buy lisinopril – zestoretic 20 mg

    Reply
  34. buy cytotec pills: cheapest cytotec – cytotec buy online usa

    Reply
  35. generic lasix: lasix 40mg – lasix 100 mg

    Reply
  36. Misoprostol 200 mg buy online http://cytotec.pro/# buy cytotec
    lasix generic

    Reply
  37. buy prescription drugs from india: indian pharmacies safe – buy medicines online in india

    Reply
  38. oyun siteleri slot: yeni slot siteleri – 2024 en iyi slot siteleri

    Reply
  39. pin up casino: пин ап – пинап казино

    Reply
  40. pin up casino: pin up – пин ап вход

    Reply
  41. вавада рабочее зеркало: vavada casino – вавада казино

    Reply
  42. online discount pharmacy nearest drug store why is zyrtec d behind the pharmacy counter

    Reply
  43. viagra in chennai pharmacy: klonopin pharmacy price – metronidazole singapore pharmacy

    Reply
  44. inhouse pharmacy propecia: online pharmacy no rx – call in percocet to pharmacy

    Reply
  45. viagra online pharmacy reviews: pharmacy online store – the peoples pharmacy

    Reply
  46. starzbet straz bet starzbet guvenilir mi

    Reply
  47. starzbet giris straz bet starz bet giris

    Reply
  48. betine giris: betine sikayet – betine sikayet
    starzbet guvenilir mi straz bet starzbet giris

    Reply
  49. farmacia en casa online descuento farmacia online madrid farmacia online envГ­o gratis

    Reply
  50. sildenafilo 100mg precio espaГ±a: comprar viagra – viagra entrega inmediata

    Reply
  51. viagra online cerca de la coruГ±a: sildenafilo precio – sildenafilo cinfa 25 mg precio

    Reply
  52. sildenafilo 100mg precio farmacia: sildenafilo – viagra entrega inmediata

    Reply
  53. farmacia online senza ricetta: Farmacie online sicure – Farmacie on line spedizione gratuita

    Reply
  54. viagra originale in 24 ore contrassegno: viagra farmacia – le migliori pillole per l’erezione

    Reply
  55. alternativa al viagra senza ricetta in farmacia viagra farmacia pillole per erezione in farmacia senza ricetta

    Reply
  56. farmacie online autorizzate elenco Brufen 600 prezzo migliori farmacie online 2024

    Reply
  57. Double Wall Corrugated (DWC) Pipes in Iraq: Elite Pipe Factory in Iraq is a leading producer of Double Wall Corrugated (DWC) Pipes, known for their superior strength and lightweight design. These pipes feature an innovative double-wall structure that provides enhanced resistance to impact and external pressure, making them ideal for a variety of applications, including sewage systems and drainage projects. The advanced production techniques at Elite Pipe Factory ensure that our DWC pipes meet rigorous quality standards, delivering exceptional performance and longevity. As one of the best and most reliable factories in Iraq, we are dedicated to providing high-quality products that our clients can depend on. For more details about our Double Wall Corrugated Pipes, visit elitepipeiraq.com.

    Reply
  58. viagra originale in 24 ore contrassegno viagra senza ricetta gel per erezione in farmacia

    Reply
  59. viagra generico in farmacia costo: viagra senza ricetta – dove acquistare viagra in modo sicuro

    Reply
  60. viagra originale recensioni viagra prezzo viagra originale recensioni

    Reply
  61. ventolin prescription discount: buy Ventolin – 90 mcg ventolin

    Reply
  62. neurontin 100mg price: neurontin 400mg – neurontin prescription coupon

    Reply
  63. 5 mg prednisone daily order prednisone buying prednisone on line

    Reply
  64. rybelsus cost: rybelsus price – semaglutide

    Reply
  65. buy rybelsus: Rybelsus 7mg – buy rybelsus

    Reply
  66. buying prescription drugs in mexico: medication from mexico – best online pharmacies in mexico

    Reply
  67. medicine in mexico pharmacies http://mexicanpharma.icu/# mexico pharmacies prescription drugs
    buying prescription drugs in mexico online

    Reply
  68. buying prescription drugs in mexico online: mexican pharma – п»їbest mexican online pharmacies

    Reply
  69. precription drugs from canada Canadian Pharmacy canadian pharmacy prices

    Reply
  70. pharmacies in mexico that ship to usa: mexico drug stores pharmacies – mexican mail order pharmacies
    mexican border pharmacies shipping to usa

    Reply
  71. vente de mГ©dicament en ligne pharmacie en ligne pharmacie en ligne pas cher

    Reply
  72. vente de mГ©dicament en ligne: pharmacie en ligne – pharmacie en ligne fiable

    Reply
  73. pharmacie en ligne france fiable: cialis prix – pharmacie en ligne avec ordonnance

    Reply
  74. pharmacie en ligne france fiable: Cialis generique prix – pharmacie en ligne france fiable

    Reply
  75. Viagra gГ©nГ©rique sans ordonnance en pharmacie: Viagra sans ordonnance 24h – Viagra 100 mg sans ordonnance

    Reply
  76. pharmacie en ligne livraison europe Cialis generique prix vente de mГ©dicament en ligne

    Reply
  77. Ozempic without insurance: ozempic coupon – ozempic

    Reply
  78. rybelsus cost: rybelsus cost – semaglutide online

    Reply
  79. Ozempic without insurance: buy cheap ozempic – buy cheap ozempic

    Reply
  80. rybelsus pill: rybelsus cost – semaglutide online

    Reply
  81. rybelsus cost: semaglutide cost – cheapest rybelsus pills semaglutide online: rybelsus cost – buy semaglutide pills or buy rybelsus online: buy semaglutide pills – buy semaglutide online
    https://cse.google.mw/url?sa=t&url=https://rybelsus.shop rybelsus coupon: buy semaglutide pills – rybelsus coupon
    buy semaglutide online: semaglutide online – rybelsus cost buy semaglutide online: buy semaglutide pills – semaglutide online and rybelsus price: semaglutide cost – buy semaglutide pills buy semaglutide online: semaglutide tablets – buy semaglutide pills

    Reply
  82. buy semaglutide online: semaglutide cost – rybelsus cost

    Reply
  83. buy semaglutide pills: buy semaglutide pills – rybelsus price buy rybelsus online: semaglutide cost – semaglutide tablets or buy semaglutide online: rybelsus coupon – buy rybelsus online
    https://cse.google.dm/url?q=https://rybelsus.shop buy semaglutide pills: buy semaglutide pills – semaglutide tablets
    buy semaglutide online: cheapest rybelsus pills – rybelsus cost rybelsus cost: rybelsus cost – rybelsus cost and buy semaglutide pills: buy semaglutide pills – semaglutide cost semaglutide online: buy semaglutide online – semaglutide cost

    Reply
  84. semaglutide online: semaglutide cost – buy semaglutide online

    Reply
  85. buy cheap ozempic ozempic ozempic

    Reply
  86. ozempic cost: ozempic generic – ozempic generic

    Reply
  87. buy rybelsus online: semaglutide online – semaglutide online buy rybelsus online: semaglutide cost – buy semaglutide pills or buy semaglutide pills: cheapest rybelsus pills – semaglutide online
    http://staroedobroe.ru/redirect.php?url=http://rybelsus.shop buy semaglutide pills: buy semaglutide pills – buy semaglutide online
    buy rybelsus online: cheapest rybelsus pills – buy semaglutide online buy semaglutide pills: semaglutide cost – rybelsus pill and rybelsus coupon: semaglutide tablets – semaglutide cost buy rybelsus online: semaglutide tablets – rybelsus coupon

    Reply
  88. ozempic cost ozempic cost buy ozempic

    Reply
  89. buy semaglutide online: cheapest rybelsus pills – buy semaglutide pills buy rybelsus online: semaglutide tablets – cheapest rybelsus pills or rybelsus coupon: cheapest rybelsus pills – rybelsus price
    http://www.camping-channel.eu/surf.php3?id=2973&url=http://rybelsus.shop rybelsus pill: cheapest rybelsus pills – rybelsus coupon
    semaglutide cost: cheapest rybelsus pills – semaglutide cost buy rybelsus online: semaglutide online – semaglutide online and buy rybelsus online: semaglutide cost – semaglutide tablets semaglutide cost: rybelsus price – semaglutide online

    Reply
  90. pin-up oyunu: pinup az – pin up 306

    Reply
  91. pin up casino pin up az pin up 306

    Reply
  92. пин ап казино онлайн https://pinupaz.bid/# pin up
    пин ап казахстан

    Reply
  93. pin up 306: pin up casino – pin-up casino giris

    Reply
  94. пин ап казахстан https://pinupkz.tech/# пин ап казино
    pin up

    Reply
  95. пин ап казино https://pinupru.site/# пин ап казино
    пин ап 634

    Reply
  96. pin-up oyunu: pin up az – pin up azerbaijan

    Reply
  97. pin up: пин ап – pin up

    Reply
  98. zithromax over the counter generic zithromax order zithromax over the counter

    Reply
  99. zithromax 500 mg lowest price drugstore online: generic zithromax 500mg india – buy zithromax online with mastercard

    Reply
  100. minocycline 50 mg without doctor stromectol price price of ivermectin

    Reply
  101. buy zithromax canada: order zithromax – zithromax 250 mg

    Reply
  102. price for amoxicillin 875 mg amoxil best price amoxicillin 500 mg without prescription

    Reply
  103. discount neurontin: buy gabapentin – neurontin 100

    Reply
  104. amoxicillin 500 mg tablet Amoxicillin For sale amoxicillin 500 mg purchase without prescription

    Reply
  105. purchase neurontin canada: gabapentin price – neurontin price south africa

    Reply
  106. https://amoxil.llc/# where to buy amoxicillin 500mg without prescription
    can you buy zithromax online

    Reply
  107. https://amoxil.llc/# amoxicillin capsule 500mg price
    where can i purchase zithromax online

    Reply
  108. stromectol pills: ivermectin 6mg – ivermectin 2ml

    Reply
  109. generic amoxicillin online cheapest amoxil amoxacillian without a percription

    Reply
  110. buy zithromax 500mg online: generic zithromax – zithromax 500 without prescription

    Reply
  111. http://zithromax.company/# can you buy zithromax over the counter in mexico
    how to get zithromax over the counter

    Reply
  112. zithromax 250mg order zithromax zithromax cost canada

    Reply
  113. amoxicillin 500mg: cheapest amoxil – amoxicillin medicine over the counter

    Reply
  114. neurontin 3 buy gabapentin neurontin brand coupon

    Reply
  115. online shopping pharmacy india: india pharmacy – best online pharmacy india

    Reply
  116. pharmacy medications: ed treatment drugs – mexican pharmacy without prescription

    Reply
  117. http://mexicanpharm24.pro/# mexican border pharmacies shipping to usa
    п»їlegitimate online pharmacies india

    Reply
  118. good price: more – cheaper

    Reply
  119. minocycline capsules 100mg stromectol shop stromectol pills

    Reply
  120. paxlovid cost without insurance: shop – buy paxlovid online

    Reply
  121. paxlovid india: paxlovid 1st – paxlovid pharmacy

    Reply
  122. Paxlovid buy online shop paxlovid buy

    Reply
  123. buy paxlovid online: shop – paxlovid india

    Reply
  124. paxlovid buy: shop – buy paxlovid online

    Reply
  125. paxlovid buy shop п»їpaxlovid

    Reply
  126. order Rybelsus: more – cheaper

    Reply
  127. ivermectin price canada best price shop minocycline tablets

    Reply
  128. buy clopidogrel online generic pills generic plavix

    Reply
  129. Cost of Plavix on Medicare: check clopidogrel pro – cheap plavix antiplatelet drug

    Reply
  130. п»їpaxlovid buy here paxlovid cost without insurance

    Reply
  131. buy paxlovid online: check this – paxlovid pill

    Reply
  132. Paxlovid buy online: paxlovid price – Paxlovid over the counter

    Reply
  133. paxlovid india paxlovid buy buy paxlovid online

    Reply
  134. http://1winci.icu/# пин ап официальный сайт
    пин ап

    Reply
  135. пин ап кз: пин ап кз – пинап казино

    Reply
  136. pin-up casino giris: pin up casino – pin up 306

    Reply
  137. пинап казино: пинап кз – пин ап кз

    Reply
  138. пинап казино: пин ап – пин ап кз

    Reply
  139. пинап кз pin up kz pin up kz

    Reply
  140. pin up: pin up 306 – pinup az

    Reply
  141. пинап казино: пинап кз – пин ап

    Reply
  142. casino sitesi: h?zl? casino – casino sitesi

    Reply
  143. guvenilir casino siteleri: canl? casino – h?zl? casino

    Reply
  144. пин ап зеркало: пин ап вход – пин ап зеркало

    Reply
  145. canl? casino siteleri: cazino – cazino

    Reply
  146. пин ап вход: пин ап – пин ап зеркало

    Reply
  147. пин ап казино пинап кз пинап

    Reply
  148. canl? casino siteleri: casino oyunlar? – canl? casino siteleri

    Reply
  149. пин ап вход пин ап пин ап официальный сайт

    Reply
  150. pin-up casino giris pin up pin up azerbaycan

    Reply
  151. slot casino siteleri: canl? casino – guvenilir casino siteleri

    Reply
  152. mail order pharmacy india: world pharmacy india – reputable indian online pharmacy

    Reply
  153. cheapest online pharmacy india: online pharmacy india – india pharmacy mail order

    Reply
  154. can ed be reversed: ed meds – ed natural treatment

    Reply
  155. world pharmacy india indian pharmacy top 10 online pharmacy in india

    Reply
  156. indian pharmacy paypal: Online medicine order – buy prescription drugs from india

    Reply
  157. natural treatments for ed ed treatments ed pills that work quickly

    Reply
  158. ed drugs online: cheap medications – erection pills viagra online

    Reply
  159. pinup az: pinup az – pinup az

    Reply
  160. пин ап кз: пин ап 634 – Пин Ап Казахстан

    Reply
  161. pinup: pinup az – pin-up casino giris

    Reply
  162. Пин Ап Казино Официальный Сайт в России: пин ап – бонусы пин ап

    Reply
  163. pinup: pin up – pinup-az bid

    Reply
  164. https://pinupzerkalo.fun/# Пин Ап Казино Официальный Сайт в России
    pin up win

    Reply
  165. пины: пины – пин ап казино онлайн

    Reply
  166. pinup az: pin up 306 – pin up azerbaycan

    Reply
  167. Пин Ап Казино Официальный Сайт в России: пинап казино – пин ап зеркало

    Reply
  168. пин ап казино: пин ап 634 – Пин Ап Казино Официальный Сайт

    Reply
  169. sweetbonanzatrpro: sweet bonanza tr – sweet bonanza oyna

    Reply
  170. sweetbonanzatr.pro: sweet bonanza – sweet bonanza oyna

    Reply
  171. sweet bonanza tr sweet bonanza sweet bonanza

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Call Now Button

Pin It on Pinterest

Share This

Share this post with your friends!