Why you should not lend money to friends

Lending money adds to an individual's goodwill.Your relationship isn't the only thing that may be affected when lending money to a friend or family member.An adequate person will understand why you are installing it, and an inadequate person should not give any money, because he is unlikely to be responsible.As shakespeare wrote, for loan oft loses both itself and friend. if you lend money to a friend or family member, beware that you may not get your money back and your relationship may never go back to normal.Repayment isn't always a priority.

Either way, it's best to proceed with caution.In the lending tree survey, for example, nearly a third.If in case you are loaning a large sum to your.First of all, it should be said that borrowing money from friends, relatives or acquaintances does not automatically have to end in disaster.In fact, there is tremendous uncertainty for both parties.

When giving a loan to a friend or family member, we often lose both money and relationships.As a borrower, you are considered trustworthy when you repay the loan amount on time (again and again).One pack a day makes the money go away.Your bank account and credit can take a hit, too.Difficulty in asking for repayment.

You can also avail easy loans from financial institutions, such as southern finance in case your friends and colleagues have refused to lend money to you.If a loan carries a 0% interest rate, then there's no incentive for them to repay sooner rather than later since there's no downside to hanging onto their cash longer.When friends borrow money, there is a number of possible scenarios:Creating boundaries for loans to friends and family can help preserve relationships and minimize the potential for problems.This will cause tension between you and the borrower, and may also cause guilt, remorse.

Yes, you can absolutely charge interest when lending money to a friend.