Lending money to a friend can either strengthen or destroy a relationship. There is absolutely nothing wrong with lending a helping hand to a friend in need; that's why we make friends in the first place. Problem arises when the borrower fails to repay back the money on time or pay at all. One question we have to ask ourselves when lending money is; is the friend borrowing the money, or asking for a favor... with no intention to pay back? Most often than not, it is better to lend a small amount that you can easily let go, than to give out a large sum that may never be recovered... causing the relationship. An important tip to keep in mind when lending money to a friend;- Always put an agreement in writing with repayment terms that you both agree to.
- Have a mediator to negotiate repayment if your friend is not living up to the terms.
- It is okay to say no. Don't not go hard on yourself if you can't afford or not sure of your friend's reliability.
- Be cautious when lending money to a friend
Do you have a bad experience with lending money to a friend? Let's hear it.. Post your comments. Thanks and stop by soon.
