Is It a Good Idea to Lend Money to Friends?

The following is a guest post.

Our friends are our sense of happiness and joy for many of us. We count on them to share our innermost secrets. We spend time with them and make fond memories. Everyone has stories of how a friend has helped in their life in one way or another. That is one reason it can be so hard to say no to a friend who comes and asks for money. At the same time, it can be a very uncomfortable situation if the money is never paid back. Is lending money to a friend a good idea or not?

There are times where we all struggle. It may be because of job loss or maybe illness. Some people may not have the means to borrow money from other sources, which is why they turn to family and friends for help. Depending on the strong the relation, it can be very hard to decline a request. I had an aunt that would continuously ask for money from my whole family. She once asked for money so she could visit an uncle who was very sick at the time.  My mother lent her the money knowing full well that she may never get the chance to see him again. Sometimes a good deed is more important than money.

There are others that say letting other borrow money can be recipe for disaster. There are few of us who have large amounts of money at their disposal so it can be devastating when it is not paid back. Others say that it is not worth possibly ruining a friendship or relationship just to lend some money. It can be a very hard decision and one has to decide whether or not the borrowed money is justified and if it can be lost. There is always a good chance that money will not be repaid. Everyone has a horror story or two of someone who has borrowed money only to go through the pain of never getting it back.

There is a generally accepted rule that you should never lend more money than you can afford to lose. Everyone has different reasons for borrowing or letting other borrow money. If you are truly comfortable with the arrangement, then it may be smart to draw up a contract that says something about when the money needs to be paid back as well as when the money is due. This does not have to be a formal agreement but just something that clearly states the terms so that both parties are satisfied. If you want extra peace of mind, then getting the document notarized may be a good idea as well.

You can argue there arte lots of reasons for letting someone borrow money. It would not be too hard to argue the opposite either. At the end of the day, it is a personal choice. If you do decide to send money online, then making sure you use a good transfer service is crucial. You can transfer money to over 170 countries from the convenience of your checking account. Check them out today is you are looking to transfer money to someone else.

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