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When to Avoid Loaning Money Out to Others

When to Avoid Loaning Money Out to Others

It’s nice to have someone in your corner you can depend on when things get tough. If you don’t know that side of lending, then you might be one of the loaners. In that case, you can keep being generous, but just be careful of what you loan out and when. You should avoid lending money out to others if you will really need it back, you will begin to judge them, or if you don’t have it to lend.

You Really Need It Back

A promise is all it takes most of the time for us to go ahead and loan out a couple of dollars. The problem with this is we expect the money back. Sometimes we expect it back sooner than we think we will get it. In cases like this, it can be extremely heartbreaking to not be able to get your money back. Doing a simple favor can be extremely costly depending on how much you loaned out. We often find ourselves feeling hopeless if we aren’t granted the same opportunity to borrow from someone the same person or anyone else.

You Might Begin to Judge Them

If you don’t want to risk losing a great relationship with a friend or family, then you don’t need to lend out any cash. One of the first things we think of when someone needs money is what they may need it for. If you ask them and they tell you, you’re immediately asking all of these additional questions in your mind and you’re casting judgment on them for being in a situation where they must ask. It’s very hard to be the one to have to try to borrow from others. It’s also tough being the person loaning it out. If the person doesn’t pay you back at all or if they pay you back late, you will feel a bad way about it. In the end, you will feel bad about the person, especially if your loan is seemingly forgotten.

You Don’t Have It to Lend

If you find yourself having to borrow money to loan out to others, it’s not a good idea. That means you simply do not have it to loan out. It’s ok to not be able to loan out money, especially if you don’t have it. If you do have the money, it’s still up to you how generous you want to be. An additional note is if you already owe someone money you are probably in no position to loan your money out. Work towards getting rid of the debt you’re already in. If you have someone that needs a loan that you can’t afford, you might suggest they search for any Hard Money Lenders.

Deciding to loan money is something that should be thought out for a while. I would only get into that type of borrowing relationship with someone I can trust to be there for me when I need it. You may be ok with money in exchange for favors or lengthy repayments. Just be clear to yourself about what you can and can’t afford to lend. Some people have a rule that they only loan out what they won’t miss. That’s a good strategy that keeps you from having the anxiety in your relationship due to an outstanding loan. Lending money is a bad idea if you really need it back, you don’t want to be judgmental, or if you don’t have it to lend.

 

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