How do you deal with friends or family who borrow money and never pay it back?
I have a question, and I'm curious how other people deal with this.
Over the years, I've had quite a few friends and relatives borrow money from me and then "forget" to pay it back.
Because of so many bad experiences, I stopped lending money a few years ago. I even lost some friends because of it, but looking back, maybe those friendships were based more on what they could get from me than genuine friendship. These days, I would only lend money to one or two people that I completely trust.
Another reason I'm careful is that I've also experienced times when I needed money myself. Looking back, I often thought, "I wish I still had the money I lent out."and value of the money.
Now I'm in a similar situation again. More than a year ago, I helped one of my relatives by paying some of their visa-related expenses. I never like asking people to repay me because it feels awkward. I usually think, "I helped them when they needed it, so if I ever need help, they'll do the same for me." Unfortunately, that hasn't been my experience.
So I'm wondering:
- How do you handle lending money to friends or family?
- Do you have a rule, like never lending money unless you're okay with never seeing it again?
- If someone doesn't pay you back, do you remind them, or do you just consider it a lesson learned?
- How do you avoid damaging relationships while still protecting yourself financially?
I'd really like to hear how others deal with situations like this.