Why You Shouldn't Lend Money to Family & Friends
A study found it ends badly almost half the time. If the borrower doesn't repay, you can lose your money and damage an important personal relationship. Lending money to a family member or friend is a risky proposition, one that could end very badly. You could lose your money and wreck an important relationship.
Why should you avoid lending money? The relationship changes. The relationship often ends completely. The person borrowing the money is in bondage to you.
Lending money
One of the fastest ways to ruin a friendship is loaning money to a friend. That's because if the friend doesn't pay you back, the friendship is likely over, since the trust that cements a friendship will be permanently jackhammered into rubble.
How to Refuse a Loan Request from Friends or Family
As Shakespeare wrote, “For loan oft loses both itself and friend.” If you lend money to a friend or family member, beware that you may not get your money back and your relationship may never go back to normal. This will cause tension between you and the borrower, and may also cause guilt, remorse, and anger.
noun. The definition of a beggar is a person who asks people for money or gifts to sustain himself, or is a person who is extremely poor. An example of a beggar is someone who stands on the street corner with a sign asking for money.
While the Bible does speak of lending money in a positive light, it also gives warning to not lend at interest to those who are poor or who are unable to repay. It speaks of lending freely, but it warns us against being greedy, and exhorts us to act with justice.
If you don't feel comfortable lending money to someone, then it's OK to say so. You may get some pushback, but it's important that you're only lending money when you're confident that it won't cause the relationship to go south.
Interest-free loans are non-taxable for both lenders and borrowers. However, it becomes complicated in case there is a provision for payment of interest, as the lender will have to pay tax on the interest earned. ... But then, unlike a friend, a bank will never lend you without interest or at a discount.
What can you do to be a financially responsible consumer? Save some of the money you earn each time you get paid. Why is it beneficial to compare prices before making a purchase? You can find the item you want at the best cost.
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