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

Alexandoy

VIP 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?
 

TOZZIBLINKZ

VIP 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.
 

Briangsam

Active 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.
 

Mellorando

Banned
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
 

Shigobad2020

Active 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.
 

Mika

VIP Contributor
The first important thing is trust. If there is trust, there will be financial security and you can lend money to anyone you want. If your siblings and relatives can be trusted in financial matters, you can lend money to them. However, before you lend money, you need to have clear terms
 

MOSIUR

Active member
@Alexandoy I think you are lucky that people come to you and you have much money. It is your chance to earn reputation by being your relatives and friends. Since you have the ability, they come to you for help. How long will a person live in the earth? At any time, you will go away from the earth. If you are rich enough to have for your children, you can lend. Generation after generation will remember you with due respect. If you are not rich and you do not have enough for your children, you need not lend money.
 

Jonaville

Active member
if we are not generous enough to give our family members and our relatives money and financial assistance whenever they are in need, then is it outsiders we are going to render that help to? I don't see a big deal in lending my family members money because I know that they will do likewise if roles were reversed.
 

kayode10

VIP Contributor
I don't see anything wrong with lending out money to your close siblings and family. I am saying this because I put my family first before any other person. My close friends are also my family. If I am buoyant enough I can simply dash them the amount they are asking. The reason is that I can also turn to them to borrow me money to fund my business.
 

Abigael

Valued Contributor
I was also so compassionate with my money sometimes back. But friends, family and relatives rarely pay back the money and so it can get really devastating. So I prefer not to give out money these days. Especially now that I am not yet financially stable and only earning a small amount for my needs.
 

Yusra3

VIP Contributor
Lending money to family can misbe type of issue to family relationships if handled improperly. Payment erasure also has its upside. However, it is recommended to pay the money only when you can manage it as a donation without any needs for a payback. If you have opted to lend, let it be treated as a business deal - the steps to take are a formal contract between both of you like the payment schedule and interest rate. An element of trust and agreement on frontiers is part of the key to avoid getting over tired. On the other hand, completely missed repayment may affect the friendly character by destroying those personal bonds.
 
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