Can you lend money to a friend?

Can you lend money to a friend?

Lending money to friend or family is only a good idea if you can afford it and you know you will get your money back. You may just want to help someone you care about avoid high interest charges when loaning from a bank. You need be okay without the money until they have repaid you in full.

Lending money to friend or family is only a good idea if you can afford it and you know you will get your money back. You may just want to help someone you care about avoid high interest charges when loaning from a bank. They may not be able to loan money from a bank because of a low credit score.

What should you know before lending money to a friend?

Determine how important it is to be repaid. When lending money to a friend (or to anyone, for that matter), there is always the risk that they won’t or can’t pay it back. Therefore, before you decide to lend them money, think about how that will affect you if you never get that money back.

Can you lend your money and Lose Your Friend?

Lend your money and lose your friend. Lending money to a friend brings with it a host of issues that can end up threatening that friendship. A: “John still owes me $200, and he keeps getting angry with me when I bring it up. Now I don’t even what to hang out with him anymore, whether he pays me back or not!”

When to abort a loan to a friend?

If you feel like your hands are tied or you’re being manipulated to lend a friend money, abort immediately. Doug Nordman, author of The Military Guide, shares about a loan to a relative that has become a tremendous learning experience along the way.

When to say no to giving money to a friend?

Whatever the reason, say “no” if you need to. If the reason you don’t want to lend the money to your friend is because you don’t think they’ll pay you back, but you want to maintain your relationship, it may be best to give a different reason why you won’t be giving them the money.