There’s a lot of chatter on this subject going on in the blogosphere lately.
So… would you do it?
If a friend or family member asked to borrow some money from you, how would you handle it?
If it was $20? $200? $2000?
My thinking is that it really depends on exactly who you are giving it to.
I have a friend who burns through cash like it’s her job when we go out to drink. We both get drunk and spend more than we should, but I don’t have a family to support and she does. I also have the better job. She asked me for $20 and promised to repay me.
I gave her the cash. But I don’t ever expect it back. Even if she has the intention to give it back, I don’t think she will ever get around to it. So I considered it a gift when I decided to “lend” her that money.
If she were to ask for a more significant amount, I don’t know if I would actually lend it to her, at least without some written promise or something.
With the exception of my immediate family and a few friends, I don’t think I would ever lend out large sums of money. I hope that I never actually DO have to lend out money to my friends… I can get my immediate family to pay it back because we’re all on the same page in terms of money management.
But with friends… it could get tricky. It would ruin the relationship in most cases. One person would always be indebted to the other, even if the money way paid back in a timely fashion. It would be even worse if the money was late coming, requiring prodding and poking and reminders. Or just not getting it back at all.
I try to avoid lending things or money outside of my immediate family; but if I do decide to let someone borrow from me, I only give them what I can afford to lose. And I think that’s key.
How do you feel about the subject?