10 REASONS NOT TO LEND MONEY TO FRIENDS
At some point on your life you have borrowed money from a friend and have also lent money out. Lending to or borrowing money from friends is not a good idea. Below are a few points supporting this statement.
1) Terms for a loan to a friend will likely either be tightfisted or unwisely generous. Each friend is going to view themselves as a candidate for sub-prime.
2) As soon as word gets out that you leant one friend money, expect your other friends to start lining up to borrow from you.
3) No matter if the loan is paid back promptly and in full,
your view of that friend is likely going to be be different
for the life your friendship. Whenever you see that person,
you are going to hear a loud vacuum sound...the sound of
them sucking money out of your pockets.
5) You are likely going to learn something unfortunate about your friend that you were previously unaware of...like he/she has a gambling problem or maybe they are addicted to drugs.
6) Your friend will either be resenting you as a result of the
debt they owe and the favor you did by lending to them
8) Friendships come and go but if their is a debt tying you together, you are like a divorced couple with kids. Meaning, even though you are no longer friends, you still are going to be forced to have a relationship until the debt is paid off.
9) You turn into an enabler of any reckless activity and
choices made with use of the money you lend. Yes, you
assisted in paying for the sport bike that was used to
become an accordion after slamming into a tree.
There are many reasons why you shouldn't lend money to friends. If you have some more that you would like to share, please contact us. Of course, there are counterbalancing reasons to lend money. You will know what those are if that relates to your situation.