Some people think that they can lend to relatives and friends, because conscience will not allow them to give money. This article discusses the main reasons why you should not lend money to family members and good friends.
10. Loans related to open type
Loans for friends and relatives are most often open. The parties almost never agree on interest, on the terms of repayment of the loan, and the borrower cannot say when he can repay the debt. Everything is very vague, and this can cause great stress. The borrower constantly recalls the debt that he must repay, and the lender is afraid to be left without money. It is recommended to set up a loan repayment schedule in advance: both parties will know when payments should be made.
9. Loans are not a priority
If the loan is open in nature, the person who borrowed may simply not be aware that after some time this money will be needed by his relative or acquaintance. He will not be in a hurry if the creditor does not say exactly when to repay the debt. Banks are punished with late fines, but such methods are not common among family members and good friends. It turns out that the debtor will not spur anything. To avoid misunderstandings, you should still tell the borrower exactly when he should return the money.
8. It is difficult to ask for a refund
Unfortunately, such situations are very common. A person is simply embarrassed to remind the debtor that it is necessary to give money, and in the end, he uses this to delay the moment as long as possible, or simply forgets about debt. If you have not been given money for a long time, take the time to talk with the borrower. It’s not necessary to talk about debt directly: you can first hint, ask leading questions.
7. This can cause family discomfort.
During family meetings, not only the borrower, the lender, but their relatives present will feel awkward. No one will be able to talk about money, duty, because such topics will hint at the current situation. It should be remembered that the loan agreement was mutual, therefore, none of the parties should feel discomfort. If you still can not once again discuss this situation, talk about cash, debts will have to be avoided in every way.
6. The borrower will become a hostage to the lender
A person borrowing money from someone begins to feel like a hostage, a servant (even if he takes it from his relative or close friend). He thinks that he must now please the lender in every possible way, even in the depths of his soul he understands that this is not so. It is impossible to resist this sensation. The person who gave the loan money is usually much easier in this regard. He may try to relieve tension, make the situation less awkward: for example, trying to joke more often, to talk with a loved one on abstract topics.
5. The borrower may ask for more
Many are afraid that a loved one will come to ask for money again on loan, and very often this is what happens. A relative or friend begins to think that he has found a permanent source of financial assistance. In some cases, people start asking for even more money than they took before. To prevent someone from sitting on your neck, lend a person only once. Otherwise, you can become a bank for your loved ones, which also does not put forward any requirements for borrowers.
4. You do not provide assistance, but solve problems
By lending to close people, you do not help them deal with financial problems, but only for a while ease them. It turns out that a person simply takes money, and does not seek to somehow earn it. Over time, he gets used to the fact that there is nothing to do to solve financial problems: you just need to turn to a kind relative or good friend. To prevent a person from relaxing, if possible, offer him not money, but, for example, an additional part-time job.
3. Such loans do not give you interest
Banks charge interest from borrowers, but this is not accepted among relatives and friends (although there are exceptions). They receive absolutely no income from debtors. Of course, we are not leading at all to what we need to lend to close people only at high interest rates. However, you can very well make the percentage low: an adequate person will understand why you are installing it, and an inadequate person should not give any money, because he is unlikely to be responsible.
2. You may need money
If you are going to lend, you should think about what you usually do not want to think about. You may be suddenly fired from work after some time, another unpleasant scenario is the need to pay for expensive treatment. Optimism, a positive attitude is good, but anything can happen in life. Keep this in mind and do not give all your money. If in your life a difficult financial situation has already arisen - all the more you should not lend anyone. Do not be shy to honestly talk about your problems to a person who asks for money.
1. You can lose both money and relationships
Remember that many quarrels occur precisely because of money. Unfortunately, this often happens with people who are related by family ties. A good relationship in the present is not a guarantee of the same thing in the future. To avoid resentment, anger, tension, unpleasant surprises, openly talk with a loved one, about to give him a loan. Sound your conditions and make sure that he correctly understood your words. Tell us about your concerns: the borrower must dispel them and convince you that there will be no problems.