Many people fall into the trap each year of giving friends money. We are not talking about a few pounds here and there. Some friends help each other out just getting through the week until payday. No, this is about money they can’t afford to lose. The first question you should ask yourself is why haven’t they gone to a bank or lender? That should answer the question for you.
But if you’re still not concerned about repayment, here are a few reasons why you should think twice before opening your wallet to a friend.
Open ended – This is true in friendship. When a friend borrows from another friend, they have the best intentions on repaying the loan and on the terms that were agreed upon. The problem, however, is that most friends usually have other pressing financial deadlines, and because you are their friend, they expect you to understand.
Asking for the money back – If your friend has borrowed money from you and you did not set up a repayment time, it could be quite a while before you see a penny of it. Also, if it comes down to the point where you have to ask repayment or at least ask when they will start repaying the loan, it can get frustrating.
Social gatherings – This is where your blood may actually boil. If you are at a social gathering and you run into the friend and he avoids you, now you will feel betrayed. You lent money and now he will not talk about it or pay you back.
You may need the money – When you lent the money with the anticipation of repayment, you may be hurting your own finances further down the line. Consider your own needs before lending money you might not be able to afford to lose later.
Losing a friendship is just not worth it – While you may feel that you need to help, think long and hard before you do. Consider that you may lose a good friend over money.
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