Monday, May 7, 2012

Is lending to a friend ever a good idea?

A friend may come over to borrow your new power tool, or a new movie or book, or even some kitchen utensil and we don't think anything of it.  But if it's money, then the entire interaction feels different.

Is borrowing money to a friend ever a good idea?

Many may be inclined to say "Of course, if my friend needs help."  But is borrowing the right thing?

The best thing for your friend is to look into why they're asking for money.  Did he/she get laid off and has been unable to find work?  Did they just find out a close family member has cancer and had to help out this family member, even though their own financial picture isn't all that bright?

If someone is in trouble, then just giving them money could be the best solution.  Otherwise, you'll be looked upon as a sort of banker to them and they know they have to pay it back.  And no friendship, if it's worth anything, is worth this.

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