I disagree with everyone who says not to loan money to family or friends. That is a general statement that is not always true. I have loaned and have borrowed money from family before.
I have always paid back, and even if not in the most timely manner.. they were always aware that I was trying.
It is like everything else. If you have famliy that is in a tough spot, it is okay to loan if the details are established up front. Most times they are borrowing in a pinch, but you as the lender need to have a level head and set down terms.
for example, when adding on to our home, we borrowed money from my parents. 6k for materials. We set up terms and set up an auto draft to their bank account. If you are careful and have enough sense to treat it has a loan, you will be fine. It also depends on the character of the person. If they are known to blow it like water, have drug habbits, enabling trash friends.. (you get the picture), you are not making a safe loan.
Now handing over a couple hundred because rent is due can be another story, you as the lender need to understand that they are in a pinch and you may not see that money back. But to hand over almost 10k without any agreement is foolish.
|