THINGS I WISH I KNEW BEFORE I LENT MONEY TO A FRIEND 💸
by Danielle Sepulveres ~ This can be a difficult situation to navigate with anyone, but there’s a lot to think about when it comes to someone in your life who you care about and would do anything to help. Here’s some of the lessons I learned after dealing with it within my circle of friends. Read the full story here: http://bit.ly/1S9MmGd
- •Ask yourself: Can you afford it?Amongst the people I know really well, if someone hadn’t had a chance to run to the ATM, spotting a twenty isn’t the biggest deal. But when a friend asks you for a financial loan that adds a couple more zeroes, stop and think because there’s a lot more to consider than nagging to get your twenty bucks back. First of all, are you personally in a position where you can be lending money? And if so, up to what amount?
- •Have an honest discussionAs awkward as you might feel to ask these kinds of questions, if you’re serious about lending the money, you need to talk realistically about what comes next. Talk to them about how they’re planning on paying you back and what they have in mind to restore them to a better monetary situation. Are they looking for a new job? Additional side jobs besides the one they already have? Selling some personal items they don’t need, cutting back on daily expense to create more cash flow?
- •Put together a payment scheduleSometimes borrowing or paying back a large lump sum starts to seem overwhelming, so it could behoove both the borrower and the lender to come up with some kind of schedule, to pay back slowly over time. Small consistent payments can alleviate anxiety over accumulating debt with someone who is a friend and the person lending the money will obviously see that effort is being made so it’s pretty much a win win.
- •You don’t need to feel guilty about saying noLife doesn’t always happen as we plan for it. Some of us come from more privileged situations or have managed to save an emergency cushion, but not everyone is so fortunate, and financial circumstances can vary considerably among a group of friends. But asking a friend for money can attribute so much undue stress to the relationship and changing you from peers to something almost like a boss and employee.