Lesson I Learned From Lending Money To Friends
Have you ever lent money to any of your friends or family?
Did they pay you back?
I’d like to share with you my story…
Someone I knew wanted to burrow money for his internet business…
The first time I loaned this person money he paid me back on time as agreed with interest.
However, before I loaned the money, I requested to get a copy of his credit report and also wrote up a contract and payment schedule.
The second time I loaned this person money, its been almost a year and so far he has not made any attempt to make any payments as we agreed upon.
My every attempt to get even a $10.00 a month payment plan fell on deaf ear. This person continued to give me many excuses, as you probably heard many similar excuses or circumstances.
Even with providing this person options and solutions he continued on with his circumstances and his excuses.
Come on, $10.00 a month is not going to kill you or create desperation.
The sad thing is this person calls himself a so called “Leader” amongst the team…
Don’t get me wrong, I have loaned money to many others and they have paid me back in full.
What I have learned is that I will only lend to friends and family if they give me collateral worth in equal value of the loan they are requesting.
I want to help others succeed in their business.
I wish that people would honor their “Word” and just do what they say they’re going to do.
I know that my goodwill and Big Heart will continue give to the Universe.
What do you think?
Does lending money to friends and family worth the stress?
Have you ever lost a friendship due to money?
Jomel Duldulao
6 Replies to “Lesson I Learned From Lending Money To Friends”
Hi Meylysa, I’ve had similar circumstances lending ti friends…I would say that the best policy in dealing with friends and family on money matters, is to chose one of two options. Give it to them with no expectation of return, or don’t. When money is lent to friends or family, each party feels a burden. The lender does because they want their money back. The borrower does, because I believe everyone has a conscience and really wants to pay the money back, but not everyone can handle money right, or they simply find themselves in a desperate position still even after the loan, so they chose to spend their money on their own need or wants, vs the payback.
So I believe the best option is just to give to them in their time of need if you feel it is what you should do. There are times that giving to someone would be enabling them to ail. That’s something we have to discern at each opportunity. The truth is though, it’s better to give that receive, and when we do, we allow God to bless us beyond any repayment we could ever get from someone. His hands are always bigger than ours. When we let go of what’s in our hand, he lets go of what’s in His, when we give cheerfully, in faith, out of a heart that wants to help that person.
God bless!
Hi Brent! Thanks for the thoughtful comment!
I understand what you are saying about lending money to friends…
…if your friend is not credit worthy, then I agree…
…however, I lend money to my husband and him to me in the past, and we both paid each other back…
…also, we paid less interest that borrowing from our credit cards, and made more interest than if we had left the money in our savings account…
…so I believe lending money is great…if the people are credit worthy!
…BTW – this post was written by my husband Jomel…
…oh – and thoughts on better to give than to receive…I don’t agree with that saying…
…because that would mean that the giver is somehow better than the receiver (T Harv Eker talks about this in a really funny way in his book Secrets of the Millionaire Mind…
…and I believe that it is both good to give and to receive…under the right circumstances and for the right reasons…
My favorite afternoon entertainment is all the “judge” shows. You can only imagine how many times people go to court over this very thing. Everything must be in writing. It is LOAN not a gift and must be stated in writing. A lesson learned the hard way by many many people. (if you have said info…even via text as a loan…take this person to small claims court)
Thanks for the thoughtful comment Stephanie…and your right, it is like Judge Judy =)
Meylysa, I had an experience with a family member where there was a business start up venture. There was not only money involved but also equipment as well. Although we put up our part (the money and equipment), the venture never happened. Neither the money nor equipment have been returned to this day (this happened a few years ago) and each day, my family member acts as if nothing ever happened. The relationship between us will never be the same. I now make it a point to never mix family/friends with money. Lesson learned
Thanks for the thoughtful comment Tina…I think this topic is a very important one…and something that every financially free person will have to master…