Why you should never loan money to friends and family!
Don't do it!
Hold your horses mate...now I didn't say "don't help friends and family", I meant lend.
Even the good old book kicks against it (Psalm 37:21-24).
I remember when I was still a kid and visitors would often gift me cash (mostly during festive periods), and at the end of the day my Dad would collect all the money and tell me lovingly " son, I'm going to keep this money for you, and when it's enough, i'll use it to buy you an aeroplane for you ", and natural my eyes would nearly pop out of their sockets with excitement and I'd hurriedly hand over all my festive loot to dad. It's been over 20years now, no aeroplane, no money, no nothing!
Alright, it's not exactly the same thing, but still, lending money or something to a friend or family member is a way of saying " I trust you to pay back without being asked", sadly it doesn't always end well and it really hurts. The subject of finances has so often been the reason for romantic relationships gone sour, friends turn strangers and even brothers becoming enemies, this has led to the topic being avoided by most people at all cost.
Below are some of the reasons why you should avoid lending money to loved ones.
Most times they never pay back - Sad to say, but according to statistics, most loans are never repaid. when you lend out money especially to loved ones, you almost never get it back.
It puts a strain on the relationship - If after lending money to a loved one, they default in paying you back, it naturally creates a discord between the both of you, or at best an unspoken grudge towards the other party, and this feeling is like a virus, it multiplies and eventually grows into resentment, and more than often, a resolution by the lender never to assist that person financially ever again.
They usually expect you not to collect back the loan - most loved ones secretly and sometimes unconsciously expects you to forgo that money you loaned them a while back for the sole reason that you're family. In fact the closer your relationship with them, the more they expect you not to even mention the money anymore, not to talk of collecting it back!
It's very difficult to ask them for the money when it's not forth coming - How do you begin to ask your boyfriend or girlfriend about the money she borrowed from you last week and promised to pay back in three day's time?? It can be done Ofcus, but the awkwardness and embarrassment of doing such is a big deterrent to the act.
Conclusion - The above discuss does not in anyway suggest you never assist anyone financially, but to be wise in the act. It's better you just give the money as a gift to that loved one instead of as a loan (That's if you can afford it). Never loan someone money you can't afford to lose if you both don't sign a repayment agreement of some sort. And lastly, learn the act of saying no or that you don't have in other to avoid the unpleasantness that comes with the other party not living up to their promise.
African quote: To lend money is human, but to get back your money is Divine 😄
My name is Edwin, and I'm glad you found my post interesting to read, thanks😊. Please feel free to add your experience in the comments section.