Avoid Loaning to Friends/Family - Payday Loans - Cash Advance - Auto Loans

Calypso · #1 (**permalink**) 03-08-2007, 03:16 PM

If possible, try not to give loans to friends and family. No, I'm not talking spotting your teenage son an extra ten bucks so he can take his girlfriend to a concernt.

But once I had a friend who wanted to sublet my apartment. She and her young child wrecked the place so badly I didn't get my deposit back, she always had some story to explain why she couldn't pay me the money she owed me, and to top it all off, she ran my phone bill up five hundred dollars before moving out. I approached her several times about these expenses, but she was evasisve and started avoiding me.

I considered taking her to to small claims court, but decided I'd lose more in time off work than I'd ever get back from her.

Needless to say, our friendship ended on very bad terms. Now I wish I'd told her cheerfully that I didn't sublet to friends because of the strain on the friendship...

randomthoughts1875 · #2 (**permalink**) 03-09-2007, 12:29 AM

I have to agree that loaning to family and friends is a bad idea. The only time I make this type of loan is when I'm certain that I won 't be upset if I never saw the money again. It seems like it must be easier to make excuses to family/friends about being unable to repay a loan as opposed to a larger lender. It's certainly not worth the strain it inevitablely puts on the relationship.

moonmagick · #3 (**permalink**) 03-09-2007, 05:30 AM

I completely agree with you. I have loaned money to my younger sister a handful of times and I think I got half of my money back once. It isnt a good practice to get into. That is for sure.

aquariancore · #4 (**permalink**) 04-19-2007, 02:07 AM

It unanimous. They always make it an uncomfortable situation.

mamab · #5 (**permalink**) 04-19-2007, 03:33 PM

Does that mean you shouldn't accept a loan from a friend or family member?

Both my parents and my husband's parents have loaned us money. So has his grandfather. However, out of all them, the only one that was a real pain in the butt, was his grandfather. He honestly didn't care if we had groceries in the house, as long as we gave him his payment every month. Of course, this is the same guy that bugged my husband to death when he was a boy because he loaned him $20 for a bb gun. He said it was unbearable.

techluck · #6 (**permalink**) 05-15-2007, 04:15 PM

I have indeed been helped out by my family when the need was great and I so appreciate it. On the other hand, at times in my life when I could afford it I was generous to them. What comes around goes around.

Lisee321 · #7 (**permalink**) 05-23-2007, 02:39 PM

There is a fantastic saying that goes really well here:

Before lending money from a friend: decide which you need more - the money or the friend.

It is sad but it's true. Too many times I have seen friendships break down or irrepairably damaged in the long term by mixing finances. This includes going into business, property, or just plain lending money. Unless each of you can separate "business" transactions from friendship, it is not a good idea.

judylynch · #8 (**permalink**) 11-03-2009, 10:10 AM

It does not mean that avoid loaning to friends or family members. We at times also need money. After all, a friend in need is a friend indeed.

kategeorge · #9 (**permalink**) 11-03-2009, 10:48 AM

No we cannot just stop helping our near and dear ones because we never know when can we need the help of our friends.To be on the safer side please look before you leap......

john flynn · #10 (**permalink**) 11-04-2009, 04:15 AM

Hi,

You must help your near ones. But what I have seen that money is one of the prime reason resulting in bad relations.

Thats why I suggest not to mix financial relation and social relations.

So, next time when ever your friends asks for financial help just help them by some kind words like "Sorry I don't have but you can go for payday loans" and suggest them some trusted money lenders.