Should You Loan Money to a Friend or Family Member?
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Lending money to family and friends
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Lending money to friends or family can cost more than you think—not just financially, but emotionally. Protect your finances, set boundaries, and keep relationships intact by avoiding loans to loved ones. This simple financial advice can save both your wallet and your friendships. | Dave Ramsey
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A loan between family members, or even friends, isn’t help—it’s a trap for both parties. Whenever you loan money to a friend or family member, you’ve become their creditor. You’re now a lender, and they’re a borrower. Family dinners and get-togethers are different when you’re sitting down to eat with your creditors instead of just friends or family. If you want to give money to friends or family (and you can afford it), just give them the money. But make sure it’s a gift with no strings attached
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