Reconsider Loaning $ to Family or Friends

When folks are in a bind financially it isn’t uncommon for them to look for help from family and friends, but there are lots of reasons to reconsider taking a loan from someone close to you.

A new survey finds:

  • In the last five years, over 60% of Americans have borrowed money from or lent money to family and friends.
  • 44% have borrowed money from a family member or friends, including 43% who borrowed from parents, 19% who borrowed from siblings and 19% who borrowed from friends.
  • As for lending, 51% have loaned money, with 27% lending money to siblings, 26% lending it to friends and 17% lending to parents.

But there are definitely consequences to lending or borrowing money from those close to you.

  • 24% of lenders say they’ve regretted the decision to lend money to their family or friends.
  • More than a third of lenders have not been repaid, with 20% of borrowers saying they haven’t paid back their family or friend.
  • A third of both borrowers and lenders say it resulted in negative consequences, including:
    • Hurt Feelings (14%)
    • Resentment (10%)
    • Decreased Contact (10%)
    • Verbal Arguments (8%)
    • Uncomfortable Family Gatherings (6%)
    • Irreparable Harm to Relationship (4%)

Source:Lending Tree

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