Have you ever wondered how a good relationship, friendship even family almost hit the rock over money issues?
You see, the chances of losing that long time friendship once money is involved are very high.
A lot of individuals don’t know how to say no to their friends and families when they come to them for financial help.
However, it for their good to be able to refuse to help when they come to you especially if the money involved is not something you can overlook in case they refuse to pay back.
Loaning money to family and friends is not the same as loaning to outsiders as there is a lot at stake that could make getting the money difficult.
Below are the reasons you should not lend money to family and friends;
1. The Agreement is open-minded
In the case of loaning money to an outsider, there is usually agreement as to when the money would be returned and perhaps with interest but when it comes to family and friends it is always done opened minded with no particular date of return and even if there is they could default.
2. Paying back is not a priority
In most cases, the borrower may not realize that there is a sense of urgency to repay the loan. Since there is no deadline, repaying the loan becomes the borrower’s last priority. They might end up paying when they feel or in instalment.
3. You will find it difficult to ask for your money
Because you as lender care bout the borrower and don’t want them to feel awkward, you avoid discussion that could make you ask for a refund.
4. They can come back for more
Since the loan doesn’t come with pressure of any sort, friends could come back for another loan despite the fact they are yet to pay up their debts.
5. You might need the money
Not receiving repayment of the loan you gave to friends promptly might spell disaster for you and your family as you may need for emergencies too.
6. You could lose money and friendship
Loaning money to a friend or family member could see you not get your money back and your relationship may never go back to normal.