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Should you lend money to a family member?

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Wiki User
2005-09-20 16:20:58
2005-09-20 16:20:58

The most prevalent answer by financial advisers is that a person should never loan money to a relative or a friend. I have made loans to both family members and close friends, however I did it with no expectations of having it repaid. It really is a personal decision, with several things to consider, such as the needs or the person asking for the loan, their ability to pay it back, should you get the terms of repayment in writing, and so forth. Also you might want to consider if you can afford to make the loan and the possibility you might "lose" your money? And then there is the not so small issue of what could happen to the relationship if the person does not repay you?

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Only if you're prepared to forgive the debt with no ill will to maintain the relationship if the borrower refuses to or is unable to pay it back. In otherwords, can you afford to lose the money you are lending? Suing a family member for the debt would only cause strife in the family.

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Lend? Any age to lend, however parents should be advised of their children's loans they may be giving out!

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First all of we live on an earth were people lie, cheat, and scam other people. So never trust giving out loans. I mean banks did it and look were it gets them sometimes. I understand if it is a family member, but still sometimes family will even screw you over.

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I don't think so, I haven't yet tried it on non-members world, but you should be able to lend, I don't see why not.

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Its not a good idea, especially if you expect to get the money back, it can cause a rift when you do not get refunded.

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You should not lend money to your friends; if you do, either you will have to bother your friend to repay the loan, which will make your friend resent you, or your friend will not repay the loan, which will make you resent your friend.

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If your credit is good, a bank will lend you money. If your credit is bad, then only a very close personal friend, who is willing to take a risk, will lend you money.

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No. You can lend items without being a member.

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Prime Rate ---- the rate at which banks lend money to each other and the Federal Reserve lends money to banks

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It is the lowest rate that banks lend money to busines or consumers. It is the lowest rate that banks lend money to business' and consumers.

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Banks do not create money, they only use the money from saving accounts and lend it to people. When they lend the interest from the loan is profit for the bank.

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when you are trading at the bottom of the trade screen it should say ''lend''

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Decide how much you want to sell it for, then when you are in the trade right click on the Sword (or whatever you want to lend) Select lend and there you go!

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Banks lend money because the interest paid on those loans is one of the ways in which they make a profit. Another way they earn money is to invest the money that is deposited in their bank.

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No, anyone with money can lend money. However, banks follow a proven process before lending money, that includes verifying income, checking credit ratings, requiring signatures on powerful contracts and so forth. Banks have established a best practices process for lowering their risk of loss and elevating their chances of making money in interest on money they lend.

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Besides a bank, you can borrow money from a credit union. However, you must be a member of a credit union you borrow from. A bank will lend to anyone who walks off the street.

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No. Who would give you for free something they paid money on??because they are nice!!!!

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ยท to accept deposits of money (encourage saving)ยท to lend money

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Interest is the money you pay when you get a loan. It is the cost of having someone lend you money.

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Credit unions may be more willing to lend money to those with bad credit. Also consider peer to peer lending options and family and friends that might be more willing to lend you money than financial institutions. Finally, some institutions may consider lending you money if you offer something of value as collateral.

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A good rule about lending money is to lend it and never expect to see it again. That way you won't be upset when it's not repaid. If and when it does get repaid then you will be happy. If you can't lend it with the expectation that it won't be repaid then don't lend it.

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You can make a profit in lending money. Success depends on who you lend to.

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* It is not a good idea to lend money to friends if you want to remain friends. If you feel you should give money then it should be given without strings attached and if you can't afford to do that then please don't lend the money. Friends don't forget that you have loaned them money and it appears your friend is not prepared to pay their debt to you so feel free to be blunt and ask them to please pay the money back they owe you. * A gentle reminder of the circumstances should remind them of why they owe you money; hopefully they will get the hint that you want the money returned. If they don't, you can probably just ask for the money (when they have had enough time to think about it and have had one or two easy reminders).

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If you can find someone to do that, all fine and good. But if you cannot let him know as well. It should not be problem


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