Rules Of Borrowing Money From A Friend

September 10, 2019

Dreamstime

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Friendships can stand the test of time and the stresses of life in nearly any capacity, except when it comes to money. It’s notoriously difficult to lend money to, and borrow money from a friend. Most people vehemently advise against it, usually because they’ve been burned by people who don’t pay them back. But also, here’s the thing: sometimes someone you care about needs money! Sometimes it’s a necessary kindness! Sometimes, if you can afford to, you should help someone out! Ultimately it is your decision and it does depend on a few factors. Do some serious thinking before you agree to it. Can you afford it and can you live with the money being paid back, even if you friend says they will? And can you look past it to save your friendship. A substantial sum will need to come with clear repayment requirements. Be clear and direct, if you have certain expectations for this money. If you simply lend someone some dosh without explaining that you need it back, you risk not only that amount of money, but also your friendship. If you’re going to resent this person for spending your cash, or feel tempted to control or police their spending habits until they repay you, it’s probably best you not loan the money. But what if you are the one needing the cash, should you ask your friend? Have you looked at other options? Ones that definitely won’t endanger a personal relationship? If you need money and you’ve ruled out a bank loan and any other sources of income, then yes. It’s complicated though and you need to be aware that your behavior with regards to this sum could determine whether your friendship survives. If you need to borrow money for a specific reason and you have the intention to pay it back, then say so and stick to it. Behave with a sort of professionalism here: pay it back as soon as possible, discuss whether you can do it in instalments, set up clear repayment terms. Ideally, you’d make your case for the loan and then write and sign an agreement for its repayment. You probably want to separate your friendly chats from your money talk, too, being very clear about your intentions to settle the debt. Operate with integrity and transparency here: you owe it to your friend. If you suspect they could lord it over you, be controlling or cruel, or make demands on you until you pay it back, then have a serious think about proceeding.

SOURCE: Metro

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