When should you give a loan to someone you care about? - Business Insider

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4 times you should say no to giving a loan to someone you care about — and the one time you should consider saying yes (via HerMoneyMedia)

Having a loved one asked for a loan isn't uncommon — one survey of 800 people in the United States found that over one-third had a family member consistently asking them for money.

If you need that money, definitely say no. And if you think the loan will continue a pattern of bad behavior from that person, and it doesn't come with clear parameters, you should probably turn it down. With that in mind: Here are four nos, and a yes to get you on the right track when friends or family ask to borrow money: By lending this money are you essentially allowing this person to continue on the same, financially irresponsible track they were on before? Say no. Another way to ask this question:"Are you rescuing this person — and has that been a pattern of behavior?" asks Ford.

If you're going to be looking at them funny, being judgmental or resentful, that's a good reason to say no."It's about you, too, not just them," Ford says. Examine that."Not just how will the person benefit from this, but how will I feel about this?"Jack Frog/Shutterstock

 

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