Comments on: Borrowing From Family & Friends – Bad Idea, Right?

By: MB

MB — Sat, 28 Nov 2009 18:24:24 +0000

I try not to lend to family or friends–if they really need money and I want to help them, I try to give them money or find some type of job that I can pay them for. I don’t want any kind of obligation like that dragging down the relationship.

The few times I have loaned money to friends was in the case where they were students and were waiting for their student loans to come in, but had nothing to live on while the loans were delayed. I was happy to loan money in that case, and I was paid back within a week of the student loans coming in.

By: Brandy Thompson

Brandy Thompson — Fri, 27 Nov 2009 10:14:16 +0000

Borrowing from Family might be ok because they are a direct relation and could understand. However, borrowing from friends becomes a menace when you are unable to repay them on time. At that time, your friend get annoy and decide for his life not to lend you a penny again. Therefore, it is not a good idea to borrow from friends.

By: Sharjeel

Sharjeel — Sat, 21 Nov 2009 21:04:06 +0000

one could borrow from family as no interest is charged. But could be a bad idea in case their needs arises and one could not able to repay on time.

By: In the Money

In the Money — Fri, 06 Nov 2009 15:29:00 +0000

I always hesitate to borrow money from family. I love the fact that they would never charge me interest and I know they would always be willing to help me out. Still, if I am unable to pay them back, I will feel as if I am putting a strain on the relationship.

By: Marv

Marv — Thu, 05 Nov 2009 04:11:03 +0000

I always seem to get the low end of the totem pole when it comes to money and family. Its always great when you can assist them but it’s always a hard battle to get that same sort of reciprocation in my time of need. Nonetheless, I find that when it comes to family the best policy is if you can just give it then do so and be cognizant of the return users and the real reasoning behind those requests…LOL! Money is funny…especially with loved ones right?

By: Mr. Faris

Mr. Faris — Thu, 05 Nov 2009 00:13:54 +0000

With me, it was the other way around: my younger brother asked me for money for a car repair. I had to be very patient to get my money back in installments when I needed my money for moving out expenses.

I agree: It’s best not to borrow from family because often this can hurt your relationship.

By: Dawn

Dawn — Wed, 04 Nov 2009 14:58:45 +0000

I am currently owing my mother. I borrowed so I could finish getting my house painted before winter. You are right, it sucks. However, I am paying back a ton each month and plan on having it paid off before Christmas, if all goes right.

By: JFW

JFW — Wed, 04 Nov 2009 05:13:03 +0000

We are roughly the same age, and I feel the same about my parents future retirement ability, but that is not a good excuse. If your mother is independantly wealthy, and is not borrowing the money she has lent you then at least pretend to pay the interest and have her send it back so the IRS doesn’t call her on an undeclared gift. If she is not wealthy, and you worried about her future cash flow, have her set the interest aside for you in a savings account that can be used to offset that cost later. Several years ago, my father lent me some money (from his HELOC) to buy my first house. He did not want me paying him interest for the loan, and that was very kind of him. I made my regular principle payments, and diverted the interest portion into an online bank account. Once the loan matured, I made a lump sum payment to his HELOC without telling him. Also, the right thing to do is what’s right now (paying interest) and what’s right later (supporting her). I know I am speaking with limited information on your unique situation, but when it comes to family you don’t want to live by “do the ends justify the means?”.

By: debt kid

debt kid — Wed, 04 Nov 2009 04:35:45 +0000

Yep

By: debt kid

debt kid — Wed, 04 Nov 2009 04:35:27 +0000

I agree on borrowing from friends last. I lent a “friend” a rent payment one time, took months to get repaid, awkward.