We all have faced this issue in our lives once or twice maybe all the time, Lending money to friends and family. This is a tricky situation because lending should depend on many variables before quickly just saying yes to a borrower.
1. Know the person that your lending the money too well enough to know if you will get it back.
2. Will lending this money put your finances in a questionable place.
3. Is this money coming out of a savings that you truly need
4. Will this lending of money put you in some type of debt
5. Definitely lend with strings attached because you don’t want to become an enabler
6. Communicate with the borrower to see if this money will help them change or grow out of a situation.
We all would love to help individuals out of their poor economic situations but knowing these 6 steps could help you and them during the lending process. Following these steps will save you the headache of losing a friendship over money.
Contributed by Cosign Jackson