All Articles Tagged "loaning money to friends"
Like marriages, many friendships have met their demise over money. There’s nothing like an unpaid debt or a business venture gone sideways to make you forget all of the time and emotion you’ve invested into a friendship. It’s usually best to avoid allowing your pockets and your pals to become too close, but inevitably there will come a situation where money may have you and your friends acting funny. In order to save your hard-earned cash and avoid any hurt feelings, try following these simple rules:
1. Never lend money you can’t afford to lose.
I’m the kind of friend who will lend a friend a few dollars if I have it to spare. But never keep your bills balanced on the good word of a friend. Even friends with the best of intentions may experience unexpected setbacks that could leave you in a panic and your bills are past due. Make sure you have enough to keep yourself covered in case, for whatever reason, your friend’s promises fall through.
(Daily Finance) — A tale of two loans and two friendships: Guiliano Stiglitz, an executive who lives in Miami and London, says he has never had any resentment over money he loaned to a friend, even as much as $200. “I write it off immediately,” he says. “If they return the money, it is a pleasant surprise. If they don’t, well, I already knew.” But Vivian P., a textile designer in New York City, felt differently about the $300 she loaned to a friend who needed it to pay her rent. Vivian’s resentment flared when the loan went unrepaid, and the friend regaled her with shopping stories. “Soon after, I was desperate for money, pregnant, and terrified. I was confiding in her as a friend,” she recalls. “I remembered I lent her the money, and she was convinced we had made a deal where I said she didn’t have to pay me back.”
A Sensitive Subject: Lending money to friends and family ranks among the most pernicious of relationship stressors. An unrepaid $100 here or there may only engender bad blood (or a write-off), but what about $8,000 for a new car? Or $10,000 to pay tuition? With thousands of dollars on the line, no karma is worse than that carried by unpaid debt.