Loaning friends money

[Triumph36]

slowhabit,

bad move. even if it isn't a significant sum to you, it may be to them and will cause them to resent you if they're ducking you or you're asking for the money back.

I recently loaned money to family - last time I do that. I was trying to be magnanimous but I don't think I will see that money again. I'm not upset about that - but I am upset that these relatives may duck me or treat me differently thinking I'll be angry that I haven't gotten the money back.

[Your Mom]

I've loaned money to friends and a family member. I will never do it again.

[rwesty]

I've loaned various amounts to several friends and have always gotten paid back. In general it is a hassle and not worth doing and I will try to limit it in the future. I say this even though I have not had any real negative experiences.

For those who say to gift and not loan to friends, I don't understand this at all. In my situation they are usually appreciative of the help and of the people who have taken longer to pay back than originally agreed upon some have either bought me dinner/drink or have agreed to pay interest. For those who say loaning ruins friendships, if someone refused to pay even after having the money to pay I would question whether it was a true friendship to begin with and in my opinion the fact that money was loaned didn't change anything.

[MasterLJ]

With my close friends my check book is open.

I have loaned money/let debts ride on paper with acquaintances with disastrous results.

My close friends really don't ask for much. I think I have about $300 in outstanding debt from people who will pay me, and about another $200 that I will never see again.

[guids]

I have 4 or 5 good friends, they will never see a dime from me unless I can afford to give it to them. There are other people who think they are my friends that I loan money too, on certain "conditions of repayment", these people find out pretty quickly how good of friends they are to me if they miss a payment.

[prohornblower]

Generally a bad idea. Unless I really know they are good for it. Like a co-worker friend needing some cash b/c he doesnt want to go by the bank b/c tomorrow is payday type thing.

Instead, buy your friend a book on money management and how to get out of debt. The money is much better spent that way.

[IggyWH]

I never loan anyone money. If I agree to give anyone money, I consider it just that, giving them money. If they pay it back, it's an added bonus, but I never expect them to. When you expect them to do, you just stress over it and it ruins a friendship.

[tshort]

[ QUOTE ]
With my close friends my check book is open.

[/ QUOTE ]

I have about 4-5 close friends who I would definitely loan money to if they need it and would be surprised if they didn't repay in a reasonable time period.

Ironically, I refused to loan another close friend $400 a few weeks ago even though months back he loaned me $700 when I had money tied up in Neteller. I returned his money about a week later once I received a check from Stars. Any other time I just ask my parent's for money, but I don't do that for gambling related purposes (unless with them).

He asked if I could pay his May rent and I lied about not having enough at the time to loan him. His parents finally cut him off from spending over $1200 a month on a credit card they pay this semester (we are 5th years). He blew through $6500 he had at the beginning of the semester (some of which was an insurance check he was supposed use to fix his car) by April (~3 months).

He has made no effort to find a job or other source of income (explain to parent's the situation). Even though I trust he would eventually repay me, I didn't want to help alleviate the situation he deserves.

[punkass]

Don't loan. Give the money. Good friends will give the money back with some beer/interest eventually. Only loan money you absolutely don't need, but there's a good chance you won't see it again.

[RedBean]

You never loan friends money. You just give it to them and hope one day they might eventually give you back around the same amount.