Lending money to happy family

Lending money to happy family

  Lending money to loved ones is often a bad idea because it puts your relationship in jeopardy. But when someone you love is in a serious bind and you have the means to help, it can be impossible to say no. So what do you do?

What you don’t do is lend money on good faith and expect to be paid back. Just as if you were loaning to a complete stranger, you need to be smart about setting up the terms and a schedule for repayment with your friends and family. But as long as you and your money stay protected, lending to someone you love is doable – even if it isn’t necessarily advisable.

 Lend Money 

When someone you love asks you to hand over your hard-earned cash, give yourself time to consider your answer. Ask what other avenues he or she has sought to procure money. Chances are your loved one is deep in debt and won’t qualify for a traditional bank loan or peer-to-peer lending. But still, it pays to ask – and make it clear that if you’re to consider lending money, you require full financial disclosure.