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Have You Ever Loaned to a Friend?

UserPost

4:45 pm
February 26, 2012


Freedom 48

Ottawa, Canada

Member

posts 59

Not in a million years.  He may have the best of intentions, but if he makes bad decisions and CAN'T pay it back… you're on the hook.

I'd help him out in other ways.  A loan or a gift… but on your terms.

Blog: http://freedom48.net

Twitter: @freedom48dotnet

6:12 pm
February 27, 2012


MaximizingMoney

Guest

The Financial Blogger said:

If you can lend him money, that's one thing but don't jeopardize your credit score by co-signing on a loan. You may end-up paying his debt in total (after seeing your credit score take a huge hit). Definitely not a good idea!

I'd have to agree. Lending cash is one thing, risking your credit is another.

4:42 am
February 28, 2012


cbhattarai

Member

posts 10

Ye i have after doing that i was in a big trouble. He repayed me after 2 years.

7:06 pm
February 28, 2012


Call Me What You Want Even Cheap

Toronto, Canada

Member

posts 121

I have loaned friends money and it's not something I would recommend. Either they don't pay you back, or take forever to pay you back. I had one friend who I loaned money to, and she asked me to loan her more money before paying me back the first loan. Crazy!

Consigning is a no no! Please don't do it. Don't let someone ruin your credit. The bank doesn't believe your friend will pay them back, that's why their asking for a consigned.

Call Me What You Want, Even Cheap

Gaining Financial Independance One Cent At A Time

Twitter @ Evencheap

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4:16 am
February 29, 2012


MoneyBeagle

Member

posts 1466

Callmewhatyouwantevencheap said:

Consigning is a no no! Please don't do it. Don't let someone ruin your credit. The bank doesn't believe your friend will pay them back, that's why their asking for a consigned.

I agree.  Potentially being out money can damage a friendship, but there's no salvation there if your credit score gets batted down as well.

Member Site: Money Beagle

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6:48 pm
February 29, 2012


WorldofFinance

Member

posts 133

I wouldn't advice it.  Help in other ways (almost any other way) but co-signing is a big responsibility!

11:50 am
March 1, 2012


Hank Coleman

North Carolina

Member

posts 363

No….never!

3:27 pm
March 1, 2012


After College Money

Pennsylvania

Member

posts 33

Thanks everyone.  After hearing a resounding "No", I told my friend that I couldn't help him.  He understood and didn't take it personally.  We spoke some more about the topic and I gave him some financial advice which I think he took to heart.

7:40 pm
March 3, 2012


Renée @ NickelbyNickel

Canada

Member

posts 105

Glad to hear you said no, never a good idea unless you can forgive the loan and it wouldn't hurt you. 

Blog: Nickel By Nickel
Life, money and everything in between.
Email: renee@nickelbynickel.com
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I'm working my way to financial freedom, nickel by nickel, one penny at a time.

7:32 am
March 4, 2012


MyCanadianFinances

Member

posts 49

I have never really loaned someone money. However, I have sold a car to a cousin of mine for $2,000. It has been well over a year since I sold him the car and have yet to see the remaining payment of $1,000. The money would be extremely useful right now but I decided long ago to cut my loss and stopped pursuing the issue.

 

Last time I will ever sell anything to family. Oh well, lesson learned.

4:17 pm
March 5, 2012


Afford Anything

Member

posts 56

Don't do it! There are other ways to help your friend. Give him a book, point him to some good websites. Don't mix loans with friends!

7:36 pm
March 5, 2012


Forest Parks

Cairo, Egypt

Admin

posts 1337

I had a bad experience, still paying for it… http://frugalzeitgeist.com/loaning-money-to-relatives/

Vist me at Frugal Zeitgeist…. Frugal and Sustainable Living for the now…

3:56 am
March 8, 2012


CBC

Liverpool

Member

posts 62

I have before, twice. The first time was great, no hassle or fuss. But the second time was a real nightmare! I think it depends on the type of friend in my opinion. If that makes any sense?

CBC International are specialists in debt recovery, based in Liverpool who provide their services to businesses across the UK, Europe and Worldwide.

10:18 am
March 16, 2012


Marina K. Villatoro

Member

posts 36

It never works out. I've gotten into this 2 times, it took a lot of sweat and tears to get the first one paid off. But I stupidly got convinced again.

 

Now, I have to figure out how to get the second one – which is an ongoing process because he's constantly complaining that he's broke, and there is no money, etc… while buying new DS's and cars for his family. But I need that money, it's my hard earned money!

10:08 am
March 19, 2012


CBC

Liverpool

Member

posts 62

Marina K. Villatoro said:

It never works out. I've gotten into this 2 times, it took a lot of sweat and tears to get the first one paid off. But I stupidly got convinced again.

 

Now, I have to figure out how to get the second one – which is an ongoing process because he's constantly complaining that he's broke, and there is no money, etc… while buying new DS's and cars for his family. But I need that money, it's my hard earned money!

I know exactly how you feel Marina! It's so easy to agree to borrowing to a friend for the second time, no matter how much of a task it was to get your money back the first time round! Confused

CBC International are specialists in debt recovery, based in Liverpool who provide their services to businesses across the UK, Europe and Worldwide.

1:19 pm
March 24, 2012


Ted Jenkin @ YourSmartMoneyMoves

Gen X & Y Finance

Member

posts 212

My personal advice is (and this comes from lending / loaning money to family and friends) – Loan / Help out if you can live WITHOUT getting the money in return.  I look at it as more of "helping" a friend or family member with a gift that I can afford…

About Me – Ted Jenkin

Wall Street Journal Expert – View My Articles

Breathe Easier® About Your Financial Future – Your Smart Money Moves (Read the blog)

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6:53 pm
March 24, 2012


Forest Parks

Cairo, Egypt

Admin

posts 1337

Agreed there. It should be seen as a gift and then a bonus if you get it back. Just don't tell them it is a gift :)

Vist me at Frugal Zeitgeist…. Frugal and Sustainable Living for the now…


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