Easenglish

 (Stormy Beginning) “Neither a borrower nor a lender be,” Shakespeare wrote in Hamlet. “For often loan loses both itself and friend.” Although when a friend or family members asks to borrow money, your first inclination is probably to help out; many people have learned the hard way that friendships and finances make a poor mix. 

Not do all loans between family and friends end in disaster, of course. In fact, although I’ve never been able to find statistics on the subject, I’d be willing to bet that most loans go smoothly. But the potential for trouble is so great that you should think twice before lending (or borrowing) money. How would it affect your finances — and your friendship?

You’re likely better off saying “no” than putting yourself in a position where you have to hound a friend for money , then . I’ve watched my own family be put under strain from this sort of situation.( Narrow Sampling)  For instance, one of my brothers borrowed a large chunk of change from my mother, money she could barely afford to part with. He’s never repaid the loan (despite buying brand new iPhones for his wife and kids), and now nobody in the family will trust him financially. It’s awkward.

Despite these warnings, some of you will be tempted to lend money. If you do, at least be smart about it. Finally, think very carefully before co-signing on a loan. As a co-signer, you’re legally obligated for the debt. If something goes wrong, you will be stuck with the payments, a black mark on your credit report, and a broken friendship. If you want to help, it’s probably better to lend money than to co-sign. If you can afford it (and it doesn’t feel strange), consider giving the money instead. That way there’s no ickiness on either side. If your friend pays you back, great; if not, you can feel good about helping them out. And remember: It’s always okay to politely refuse.( Terminating Sentence)