Finance Is it wise to lend money to your siblings and relatives?

Alexandoy

Valued Contributor
When I was younger I was so generous that it is easy for my siblings and relatives to seek financial help from me particularly in borrowing money. More often than not they do not pay me back. When they would ask for a favor again I had to refuse for obvious reasons but sometimes they still got the better of me. That’s how I learned that oo much compassion is bad for the finances.

When I reached middle age I made a personal policy to stop lending money to anyone. Now that policy stands for more than 20 years and I am happy because I have prevented such problems in failing to collect the money they borrowed from me. It is not that easy to refuse extending financial favors but you will get the hang of it after several refusals. Always think of yourself that if you are the one needing then no one would help you. How about you, have you learned a lesson on lending money to people or are you still very generous with them?
 

Ukohjnr

Valued Contributor
For me i think is wise to lend money to your friends or siblings if only they are ready to use the money for a good and profitable business,is also wise to lend them money if that's the only way the will get rid of some of their problems,most people don't find it easy or a wise idea to lend their family or friends money because most of them don't use the money for good,what am trying to say is that, it's wise to lend money if they are using the money for good reason.
 
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Briangsam

Well-known member
Loans between family members can be risky. Before any money changes hands, think about putting these conditions in place. Loan terms: The borrower and lender ideally should agree on a repayment schedule and an interest rate before making a loan. Loan terms should be put into a signed contract.
 
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Mellorando

Active member
Of course it is wise to lend money to your friends and siblings including your family members or relatives as long as they are using the money for a good purpose I think it is wise you lend money to them because if that purpose become profitable you personally Might gain from it
 
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Shigobad2020

Well-known member
Giving a family member a loan is quite difficult and risky because he or she might not want to return it andni you as a responsible family member , you might not want to take law into your hand for then sake of the family.
 
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