Lending Money to Friends and Family

How to avoid heartache when loaning to a loved one

they can do to meet their commitment. “I’d say to them that we’re still friends, or we’re still family, but this issue is front and center,” Stallings says.

At the end of the day, it’s up to you to decide whether the amount of money you loan is worth the bond you have with that person. “Despite the discomfort, I try my best not to burn bridges,” Holmes says. “When it comes down to it, the relationship is still more valuable to me than the money.”

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  • Nadine

    Loaned a daughter $10k to purchase first Home, with an agreement that I would have a place to live out my senior years. Now that she’s had the money in her account since March of this year, and hasnt found a property she can afford; She has now re-nigged on the entire agreement, and refuses to return my gift money.
    What legal recourse should I take? I want my initial investment and the interest.

    Ms Nadine

  • Never ever lend anything to a relation or a friend..
    “friend in need is a friend indeed” nonsense is old world. Nowadays people cant be trusted and lack principles.

    Money is a no no maybe a place to put up for a few weeks but money never. ever.
    Even if i was a millionare i would never lend a dime to anyone except professional acquaintances.

  • Keeping a professional mindset and only lending what you can afford is truly, truly sound advice.
    One of the most important aspects of borrowing and lending with friends and family is to protect the relationship. 
    The easiest way to protect the relationship is to increase the likelihood of borrower repayment.The most successful way to accomplish this is by (1) ensuring both parties agree to the terms of the loan, (2) getting everything in writing, and (3) receiving assistance from a 3rd party.We’re started http://www.LendFriend.me to meet this exact need, hopefully we can help you also.

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