Donít Lend Friends Money Without Reading This- General Budget & Finance

By Sally Herigstad Thereís a girl weíre going to call Alana who is the prime example of how not to lend financial support to 11484friends and family. Alana only wanted to help. She bought her unemployed friend a truck so he could look for work. She put the truck in his name and the loan in hers Ė

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  1. #1
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    Default Donít Lend Friends Money Without Reading This

    By Sally Herigstad
    Thereís a girl weíre going to call Alana who is the prime example of how not to lend financial support to Click image for larger version. 

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ID:	11484friends and family. Alana only wanted to help. She bought her unemployed friend a truck so he could look for work. She put the truck in his name and the loan in hers Ė now the friend and the truck are gone and sheís still paying off the loan.

    Most people donít buy trucks for their friends, but youíd be surprised how many people get into financial difficulty trying to help a grown child, a romantic interest, or even an acquaintance with a sad story.

    You can help people without jeopardizing your own financial stability. Next time someone asks for help, remember these tips:


    If you lend someone money, get everything in writing, including when you expect to be paid back.


    Donít co-sign on a loan unless you are prepared to make the payments yourself if the borrower doesnít.


    Remember, you canít solve all of anyoneís problems. Unless you are very, very wealthy, you canít go around adopting adults and letting them become your dependents.


    Be honest about what you can afford. You might be able to help with a doctor bill or fill their gas tank so they can get to work. If you canít afford to pay their rent, admit it.


    Concentrate on helping people with one problem at a time. For example, if they need a job, you can help them write a resume or give them rides to job interviews. Donít buy them a truck!

    Sally Herigstad is a CPA who has written extensively on personal finance issues. She is also the author of ďHelp! I Can't Pay My Bills.Ē

    © Can Stock Photo Inc. / PhotoEstelar

  2. The Following 11 Users Say Thank You to rtebalt For This Useful Post:


  3. #2
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    Default Re: Donít Lend Friends Money Without Reading This

    GREAT ADVICE. Thank you for posting this.
    Terra , Wife to Kevin, Mom to Cassidy (12) and Ciara (2)

  4. #3
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    Default Re: Donít Lend Friends Money Without Reading This

    You're very welcome! I hope it helps someone.

  5. #4
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    Default Re: Donít Lend Friends Money Without Reading This

    We have helped friends and family so many times over, and it turned out bad every time. Now we don't loan anything to anyone. Sad but true.
    Tonia

    Wisdom is doing now what you will be happy with later on.

  6. #5
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    Default Re: Donít Lend Friends Money Without Reading This

    my boyfriend loans money out to friends and gets it in writing. Problem is even with the agreement some of them we cant get to pay even 20.00 a month. I keep telling him friends and family will stick you before anyone else will. One day he might listen.
    Mdowdy

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    Default Re: Donít Lend Friends Money Without Reading This

    Never co-sign a loan- whether you have anything in writing or not, whatever loan papers you signed you agreed to pay even when the "borrower" doesn't pay. At my last job we discouraged our members (I worked at a credit union) to co-sign loans. More times then not if someone needs a co-signer then they shouldn't be getting a loan period. To need a co-signer your credit has to be pretty bad. Young adults with no credit history can build credit without getting a car loan believe it or not. Even co-signing a loan for your children is never a good idea when they want a new car. It is not mean to not co-sign, they should learn that you have to start off with not so much a dream car as you start off with what you can afford- if that means they have to save up for a $1500 car then so be it. Just say no to co-signing!

  8. #7
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    Default Re: Donít Lend Friends Money Without Reading This

    A friend of mine asked me once to borrow $500 and I sadly told her no since I was saving up for a new car at the time. I did offer to spend the day with her going to banks and credit companies trying to figure it out. I have kind of always regretted helping her since she is such a good friend but who knows how it could have turned out?

    Another friend was in a similar situation and asked for about $50 but all I had at the time was $20 - never saw it back and she never mentioned it again. She did go through a rough patch and it took her about a year to climb out of it but I don't feel like its appropriate to ask for it.

    Money is such a sticky situation especially with friends. Thank you for this post! It's so difficult to know exactly what to do when put in that situation.

  9. #8
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    Default Re: Donít Lend Friends Money Without Reading This

    It is I borrow my friend 1000 $ and never see it back
    Bye bye money

 

 
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