July.30.16Charity
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Money Matters with Nimi
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Lending money to a friend in need often seems harmless, but things can end up getting really awkward. Here are some reasons why you should be careful if you
are considering this.
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1. Can you afford to lend?
Unless you are debt free and not in any financial difficulty yourself, don’t lend because there is the chance that you wont get it back.

2. It becomes a habit
Especially in an office setting, as soon as you lend money to one person, word quickly gets out and a string of requests follow.

3. Interest free loans
Loans to friends seldom include interest, which usually means you are losing money for every day your money remains outstanding.

4. Change in dynamics
Loans can change the dynamic in friendships as the balance tilts from equals to one party being needy.

5. The loan is not a priority.
With friends it can be awkward to make a formal loan agreement; as a result, the loan may be open-ended and not taken seriously; there is no legal recourse.

6. Look for other ways to help
It may be that your loan will only scratch the surface of your friends needs. You might be able to advise them on addressing the fundamental problem instead of throwing good money after bad.

7. Delays in repayment
With all the best intentions your friend may just not be able to pay back as other high interest loans may be a priority.

8. It can be so difficult to ask for your money back
Lending money to a friend can reveal a side of them that you have never seen before. You thought you were trying to help, but your friend, probably out of embarrassment becomes resentful and irritable, even confrontational and may start avoiding you and stop taking your calls.
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Lending money to friends often ends badly so it is best to avoid it if you can. If a close friend or family member asks to borrow some money, it may be far easier
to GIVE what you can afford, and not expect anything back, than to embark on this awkward journey that can lead to both the loss of your money and your friendship.

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