The surest way to lose friends is to lend them or ask them to lend. There is hardly any friendship, or even kinship, that you would not be poisoned by a non-repayable loan.
I have already written well in this article why you should never lend to a relative, friend or co-worker.
I found a survey that numerically proves why money thrown out the window is the amount borrowed.
According to the survey
97% of people have already borrowed money from relatives and friends at least once and 65% repeatedly.
84% are less than $ 10,000 and 43% less than $ 1,000. Borrowing is predominantly of young age, with a quarter of borrowers only over 30.
65% of them asked for a loan from their mother, 55% from their father, 20% from friends and 13% from brothers. (Of course, grandma, girlfriend and more are on the list.)
As a matter of fact, most of them asked for loans from colleagues, followed by grandfather and father. The least had to be given to friends.
Most importantly, half of the borrowers only repaid the money in full, 36% only partially and 14% not at all.
Only a quarter of lenders had a deadline to repay the loan
And 89% did not charge interest. (Surprisingly, 14% of friends / girlfriends have charged interest to their life couple.)
74% of borrowers said the loan did not present any tension in the relationship. Only 45% of lenders thought so …
25% of borrowers thought they were causing some tension, almost twice as much as lenders.
In 1% of cases, the loan caused severe tension. I mean, among borrowers, because 6% of lenders said that.
I could draw some lessons from it, but I can only reiterate what I have already written in my previous article. In half of the cases you can say goodbye to some or all of your money, and only half of the cases do not cause stress on the loaned money. Obviously in the half when it was returned completely.
It’s a good idea to think about this before you lend money to a relative
Friend, or co-worker. Not only do you lose a lot of money, but also your friend. That’s a pity at least. And for someone who can’t afford their money, it’s not about helping you lend it to digging deeper into the debt pit. Instead, sit down with him and help him get more out of his messy financial situation by putting his finances in order.