thinking twice about lending money to third party is agreeable. But to your own mother, I can't agree with that, especially when she just had stroke! Maybe its the differences in customs from different countries that also affects our decisions..
t-luck
@
Dec 02, 2008 03:56:10 AM
Loaning Money to Friends - Documentation
I had a similar experience several years to the one in the article- I lent $5,000 to a friend so they could fix their car and retire some high interest credit card debt. About $3,000 into repayment the friend sort of lost interest in making the payments. Now whenever I see this person our conversations are very terse.
The learning from the story was to document the loan and keep track of balances. Recently I lent money to another friend of mine, but this time, we drew up formal loan documents (from the site www.loanback.com) and everything has gone smoothly.
Jim
of TX
@
Dec 01, 2008 14:38:09 PM
Lending to Friends or Family,
Don't do it. If you are in a position to "give a gift" of their need, feel free., but write it off just in case.
If the loan becomes bigger than the relationship, it will crush it.
wood.smoke
of AR
@
Dec 01, 2008 01:16:43 AM
A few years back I lent my brother several sums to buy books for college. First of all, I went with him and paid for them myself, so that's exactly where the money went. Secondly, I kept a running tally in my palm of what he owed. He'd occasionally pay me back some of it and I would write that in. The way I got most of it back though was to say, "Hey, if you buy me this, I'll take $x off your tab." Worked surprisingly well.
Slinky
of WI
@
Nov 26, 2008 19:07:53 PM
"Give" is the key word
You can try and make it a contractually binding loan just as if they were borrowing it from a lending institution, but know that it is more likely than not to turn into a gift. Be sure that you can afford to get along if and when it is not paid back.
HillbillyBill
of TN
@
Nov 26, 2008 06:51:09 AM
"Give" is the key word
You can try and make it a contractually binding loan just as if they were borrowing it from a lending institution, but know that it is more likely than not to turn into a gift. Be sure that you can afford to get along if and when it is not paid back.
Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.
t-luck @ Dec 02, 2008 03:56:10 AM
Jim of TX @ Dec 01, 2008 14:38:09 PM
wood.smoke of AR @ Dec 01, 2008 01:16:43 AM
Slinky of WI @ Nov 26, 2008 19:07:53 PM
HillbillyBill of TN @ Nov 26, 2008 06:51:09 AM
HillbillyBill of TN @ Nov 26, 2008 06:51:09 AM
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