Lending money to friends

@GLcameron, as per the song - what are friends for? But there is a limitation because some friends, I'm not saying all because there are some exceptions who are not abusive. But generally, when friends know that you have a lot of money, they tend to think of reasons to borrow money from you on the pretext that you have more blessings than them. From what I see, that attitude is partly out of envy, that they want to parktake of your blessings not because they really need the money.

 

If I was a millionaire and able to live a lavish lifestyle, I wouldn't want to see my true friends destitute so I would be more than willing to help them out. That isn't because I'm doing it to feel good about myself, that's simply because I wouldn't want to see them struggle.

 

Money can destroy relations, so we are better off separating money and friendship as a general rule. Exceptions can naturally happen though.

 

I've sort of learned the hard way that with lending money to people you soon learn who your true friends really are.

As a rule, I never give or lend out money to friends or acquaintances unless I really trust them. Most people I've found will take advantage something rotten and they will see you as the go to person because "if they did it once they will do it again"

Tread very carefully when it comes to money and friends. And family members too in some circumstances.

 

To be honest I'd rather lend money to a friend over a family member because in my experience a friend as more responsibility in paying it back. A family member won't be to bothered as they think because they're family, they aren't under as much pressure but I think it shouldn't really matter, and if a person owes you, no matter who they are they should be obliged to pay it back as soon as they can.

 

I am with your husband on this one. If you want to lose a friend lend them money. I have known many friendships which have been ruined over money and sometimes it was only a small amount. I guess it comes down to how much you trust this person to pay you back and how long they are expecting to take to pay this amount back to you. As a rule I would say don't do it! It is not worth the hassle that will follow. I agree with pwarbi in that a friend is more apt to pay you back then family is. It is your call but consider the options closely before you make your decision! Good luck!

 

On the rare occasion that I have been in a position to loan a family member or a friend money I just treat it as a gift. I don't do large amounts or loan out what I need. I end up pleasantly surprised if I'm paid back.

 

Gee, you are one good entrepreneur. I admire young people who do that. My sister-in-law is an enterprising girl. She would buy pastries and sell it at school on credit. You can expect that the price is much higher because she extracts a big profit. And when her classmate couldn't pay on time (the following week) she would levy an interest. When she finished schooling, she was a lender but only to close friends so as to have assurance of payment. She is still doing that in the US where she lives now.

 

That's probably the best thing to do, but only if it's a small amount. For large amounts there are credit cards and other type of loans. If they can't afford a credit card or a personal needs loan from a bank, how on Earth would they ever repay your money?

I do the same, but only in my close circle of friends.