Lending to friends

[rabbitfoot]

I just had a friend call me up and after a long story, ask to borrow $500. While I value her friendship, $500 is a lot of money for me at this time. I think that she would pay me back, but if she didn't, I wouldn't want to lose the friendship over the money which I am sure would happen. But I don't want to lose the friendship because I decline her request either. Has anyone else had to deal with a dilema like this? Any advice?

[moneyrant]

Don't do it! Nothing but regret and trouble will follow.

[jeffrey]

I would think long and hard before lending money to a friend. If I do lend money, I always do it with no strings attached and don't expect it back...so it isn't really lending, but a gift. If the person repays me, it's an extra bonus. That way it doesn't effect our friendship. If I can't give it as a gift, then I don't lend it.

[terry1156]

I don't think it is a good idea. The times I have loaned money to family and friends, it has always caused more problems than if I just had said "no" in the first place. If you do, then make a contract. That way if you frienship does disolve, you will still have a legal way to get you money back.

[Tree0164]

Unless you are going to give it as a gift. I wouldn't give the money.

Loaning money to friends and family can create more problems than it is worth.

[2moretrees]

I have to agree with the others. If you give it as a gift, then there will be no hard feelings. Otherwise, you will just have a lot of problems.

[crosses]

I have lent money to friend without a problem, but they were people that I trusted 100%. They also needed the money for an emergency situation and not because they were in debt and not handling their money well. You need to look at the situation. Is there a good reason to lend the money and are you fairly sure you will get it back. Trust your inner self and gutt feeling.

[rabbitfoot]

Thanx to all for the advice. I turned her down and she wasn't happy at all. I'm not sure what will happen from here with our friendship, but I think I made the right decision. Thanx again.

[terry1156]

I think you made the correct decision. Unles it is a unique and special circumstance. you are better off not lending to friends and family.

[Tree0164]

Rabbit.
It sounds like you made the right decision. Not having the "money" issue between the two of you will be better. It may take a bit of time for her to get over it.

Take care

[emily1067]

We just lost a friend over a money issue....he borrowed money from my boyfriend in Vegas. We never expected to get the money back (or we never would have lent it in the first place). But now the person we lent it to feels guilty about it or something because he won't return our phone calls.