I had a friend send me a text message while they were at a frozen yogurt shop last night asking if I wanted anything. Are you freakin’ kidding me? I will never, repeat NEVER, pass up an opportunity to chow down some FroYo. I thought to myself “That is really nice of my friend to front the cost of yogurt.” Of course I will be paying her back, but there is always the possibility I turn flaky and never make that payment.
This brings up the topic of today’s post: you should always pay people back, and you probably shouldn’t borrow money in the first place. I hate debt, but I especially hate owing money to people I know. That is why I refuse to borrow money from friends and family. And more importantly, this is the reason I refuse to loan money to those close to me.
Have ya heard the phrase “Never mix business with pleasure”? Well lending money to friends is a total violation of that rule. If your friends need to borrow money from you, there is probably a reason for that… they are broke. If they had the means to make the payments, they wouldn’t have to borrow in the first place.
If your friend is desperately in need of money, then you have two options…
1) Loan them the money, probably never get paid back, be pissed off, lose a friend.
2) Give them the money as a gift, with no strings attached and no expectation of repayment.
I personally don’t believe in loaning money out to those close to me. Maybe you disagree, and if you do, you’re a dumb head (just kidding). Have you ever been asked to loan money to a friend? Did you do it? Did they pay you back on time and as expected? If you’ve been asked, but didn’t do it, how did you let them down? It’s definitely an awkward situation so I’d be curious to hear your thoughts.