Money Talks News: When Relatives Ask For Money
Mon, 25 Nov 2013 13:48:11 GMT —
"He wouldn't pay me until I said to him - Look, you remember what you owe me? You don't owe it to me no more. Forget about it. Then he paid me the next day."
People say money and friends don't mix, and for good reason. It strains relationships.
We've all been there: feeling like a human ATM. Our kids, our friends, our family-- they want to borrow money. You say no, you feel like a heel. You say yes, you can feel like a chump. So what do you do?
First and foremost, don't wait till it happens to decide what to do. Decide what's right in advance, then make some rules about who you'll lend to and when.
Start by evaluating your ability. Ask yourself if you can afford it, especially if there's a chance you won't be repaid. Next, don't make exceptions. If you decide you're not going to lend to friends, don't compromise -- even once.
When someone hits you up, don't hesitate or be wishy-washy. Be clear, be firm and answer immediately.
Next, consider alternatives. How else can you help? Can you help them sell something? Make a budget?
Use peer-to-peer lending? Find extra work? And finally, if you do decide to offer the loan, get everything in writing.
You can get free promissory notes online. Fill it out and have it signed. If the amount is serious, be serious: talk to a lawyer, and consider getting something to secure the loan.
Bottom line... it's cool to lend a helping hand to a friend or family member. But it's never cool be taken advantage of. So create your own personal lending policy, then stick to it.
Now, you want a free promissory note or more information? I've got it waiting for you right here at moneytalksnews.com. Just do search for "Loaning money."
For Money Talks News, I'm Stacy Johnson.