Lending Money to People
Posted by Cap in Personal Finance on July 17, 2005 |
So. Pros and cons? Okay, maybe the answers are a bit obvious.
Pro: They return the money promptly and say they owe you one.
Con: They return the money late, or never return it at all. Trust is lost, “friendship” is broken, silence ensue, follow by hate and bitterness…
Letting people borrow money is an iffy issue. Especially if it involves family members, because unfortunately sometimes family members are the ones most likely to take advantage of you. Thankfully I don’t have family members like that, but I’ve read/heard plenty of stories.
Thinking back, high school was a period of time where people were constantly asking to borrow money from their “friends.” They can be small amounts, but they certainly add up. One particular person from back in high school still owes me $60 till today. Not a large amount really, but it still tickles my bone in a wrong way whenever I think about it.
I’ve borrowed money occasionally too, but mostly because I just don’t have cash on me. To my recollection I’ve paid everyone back ( but I’m not perfect so I probably owe a buck here or there). These days it’s not really an issue, as I haven’t let anyone borrow any money — not because I don’t want to, but because no one asked. Although I think I’ve learned my lesson, and can distinguish between those that are trustworthy and those that aren’t.
Which reminds me of something I read before on an online message board. There are two types of borrowers: Those that can pay you back but wont, and those that want to pay you back but can’t.
7 Responses to “Lending Money to People”
Leave a Comment
Summer Reading »
« Use It Wisely
July 18th, 2005 at 8:25 am
Yeah, lending money to family is always sticky because unlike a friend that you can “lose,” you can’t really cut all ties with that family member. I always prefer not to lend friends money and never more than like $20… I wouldn’t be lending people $60 especially back in college, I probably didn’t even have $60 on hand to lend out. :)
July 18th, 2005 at 5:31 pm
Neither a borrower nor a lender be for loan oft loses both itself and friend.
It was true in the 17th century and it is true today.
July 18th, 2005 at 7:22 pm
jim: so true. I wish I never hand out that $60. i was but a young fool. or rather too trusting.
dan: thats true too, I notice my good friends generally will be good enough friends not to burden me with their financial problems.
July 19th, 2005 at 9:02 pm
I take my mom’s advice, and treat lended money as a gift. I only ‘lend’ money I’m willing to give, and I don’t expect to ever see it back. I even tell the person, as I’m giving them the money, that they don’t have to pay it back.
One of two things will usually happen: Either they will simply return the favor sometime down the road (”No, let me get lunch, I owe you.”), or they will actually pay it back (at which point I try a few more times to refuse it before actually accepting it).
July 20th, 2005 at 6:39 am
wont that be a bit dangerous? my friend says he’s like that, and he lends money out like he’s a money tree.
his solution when they dont pay back is to stop talking to them. hehe. doesnt seem too stable..
July 20th, 2005 at 7:45 pm
I like what lisa said… Never lend money unless you’re willing to make it a gift.
I don’t lend money often, but from time to time it’s necessary. I just make a mental decision to never see the money. Otherwise that loan might have a chance of ruining the relationship.
Financial Maturity Blog
February 28th, 2007 at 10:34 am
It’s an iffy subject but, I will not lend a friend money ever again..I lent a friend $100.00 fr last summer(06) and he lives next door to me……And to this day I cannot get my money back. I have reminded him several times only to hear, “I have the money on my desk at work “..Which was a lie.Still is. We are not really friends anymore.
I can afford to lose him as a friend as he is a loser….It’s been almost one year and no money in sight.