Sometimes you might really feel like you are trapped between a rock and a hard place for sure when a close friend, co worker, or a family member comes to you to borrow money. The love for them that you can have will usually make you decide that it is the decent thing to do. This is a mistake that so many people make and then nearly always live to regret.
There are not many things that can come in between people faster than money that has been borrowed and not repaid. It sometimes doesn’t even matter how much you trust the other person or how close you are, it can still become the one thing that can destroy a family relationship or a friendship. People may not mean to take advantage of closeness like friendship or family, but when they are in desperate need of money they will probably ask.
So what are you supposed to do when you are faced with this situation? If it is something that you feel you must do, consider giving the loan as a gift if you can. That way it will signify that the person will not have to worry about paying you back. Of course, if they really care for you the same way that you care for them, they should make an effort to pay you back regardless.
Another wise thing to do is not to let others know how much money you actually have. If they ask you and it is someone you know you can not trust to pay you back, just be honest and tell them that you can not afford the loan. If you to have a budget your self, then you probably can not afford to do the loan and then not be repaid. It is not really being dishonest, but rather it is protecting yourself and your relationship with that person.
It might seem tacky and could possibly offend someone that is asking to borrow money if you ask them for some sort of collateral if you do loan them money. If they have intentions of paying you back, they should understand this and not be offended. A legal contract of some sort could also be signed by the borrower. This might seem a little drastic, but that will depend on how much you will be affected if you do not get your money back.
Rachel Yoshida is a writer in the field of finances and is currently assisting those in need of no fax payday loans, and can help anyone get a cash advance in as little as 1 hour.