It’s always hard to deal with friends and family members trying to borrow money from you. You may think that you always must help out those in need, but often, this situation ends up hurting you more than anyone else. To make the best decision, analyze things from all angles.
- Evaluate things with your heart and mind. It’s okay to feel sympathy but remain rational. You don’t want to let emotion get in the way of sharp, sound logic, and acting out of sympathy could lead to a poor decision. If you feel and think that it’s right to lend that person money, do it. But if you have any doubts at all, don’t push through with it. You’ll probably be better off for having chosen to hold back in this case.
- It may help to consult someone before making the decision. A third person’s point of view may provide you with a more objective outlook on things. This person can be another friend or family member.
- In any case, don’t be afraid to say no. Don’t hesitate to refuse someone if the situation involves a lot of risks. Instead, you can help out that person by looking for more options for him or her. In doing so, conduct the conversation with the utmost sensitivity. It’s not the person you’re turning down, just the request.
- Money loaned to another person can be repaid with a gift. If you decide to lend that person money, let him or she know that once his/her financial situation improves, you can be repaid with a gift in the same amount.
- However, as a safety measure, you may opt to sign a contract. This guarantees that you’ll get your money back. This is especially important if you’re lending out a large sum.