Lending money to friends and relatives

Tip: Lending money to friends and relatives

People can be very generous to lend money to friends and relatives without questions, but the chance of repaying is not good. In one survey, when dealing with friends, only one in four persons will repay money. When dealing with relatives, only about one in two persons will repay money.

It's a good idea to ask the borrower to write a note, or
make a contract or an agreement with signatures of both
the lender and the borrower on it.

Lending money to friends and relatives could be a way
to break a relationship, losing both friends and money.
When you lend money to a friend or a relative, consider
it as a gift in case the person doesn't pay, if you can,
to restore relationship.