Pop quiz hot-shot, your mom, dad, sibling, child, best friend, or other person of whom you are bound to by affection or obligation, approaches you and says “Hey, I have an unforeseen bill coming due and was wondering if I could possibly borrow some money to cover it?”
What do you do? WHAT DO YOU DO!!!!!!!????
Obviously I made this hypothetical situation vague for a reason.
- If your brother comes and asks for a $20 loan to put gas in his car so he can make it to his first job interview, you’ll probably loan him the money.
- If your best friend asks for a $500 loan so they can fix a leaking pipe in their basement, would you help out then?
- What about if your mom or dad needed $2,000 to catch up on mortgage payments they fell behind on?
Shades of gray. There is no one size fits all strategy when it comes to loaning money to close friends and family. Fortunately, I haven’t yet been faced with a situation where I’ve been asked for a loan, but I’m sure at some point in my life that day will come. While I don’t know exactly how I will respond, I assume the level of emergency will directly correlate to the amount of money I’m willing to loan. $500 loan for a new computer? Heck no techno. $500 for a new alternator so you can make it to work? I’ll probably help ya out.
You ever been asked for a personal loan before? How did you respond? Was it awkward?