subject: How To Deal With Matters Concerning Money Without Hurting Yourself [print this page] A friend or family member asking you for a loan can always turn into an uncomfortable situation. You always feel the need to help, but often times you end up being put in a spot. It's always hard to resist friends and family but try to analyze the situation first before making the decision.
1. Evaluate things with your heart and mind. It's okay to feel sympathy but remain rational. You don't want to let emotion get in the way of sharp, sound logic and acting out of sympathy could lead to a poor decision.
If you decide that it's worth helping out that friend or family member, go for it. But with the slightest inkling of doubt, don't push through with it.
2. Get another person's opinion. A third person remains neutral and often gives objective advice. This person can be another family member or friend.
3. Don't be afraid to say no to that person. If you can see that lending that person money may not be a good idea after all, don't hesitate to let him or her know. After all, it is your money. If you need to, seek the help of others.
But whenever you choose to let down a request, do it in a sensitive and considerate manner. Let the person know that it's not him or her that you're denying, but simply the request.
4. Lending money can be repaid by giving a gift. If you do choose to lend that person money, let them know that once their financial situation improves in the future, they can repay you with a gift in the same amount.
5. To be safe, you can sign a contract. This helps especially when you're lending out large sums of money. This can help ensure that you'll get your money back in the future.
