I’ve read that one should avoid loaning money to friends (and relatives) and do so only if it is money or relationship they can afford to lose. I’ve not loaned money to anyone yet, but I’ve been the beneficiary a couple of times during my school days. Recently, while hanging out with friends, I heard something related to the above and thought I’d share the story.
Since our school days, lending money among friends has been common in our circle with no questions asked about the return date. Read More…
Never a borrower or a lender be is a good adage, but even with a friend, I would get a contract.
@rad-racer, that 5-biz rule does not apply. That is only a hold time on deposits but as far as the transaction between banks it can be cleared within 2-3 days. Their extra hold times is to capitalize on the money and earn interest for them. Damn banks! And lets not forget when you put a stop on your cheque you will get charged a fee. So in the end you lose.
Why not just write a cheque and ask your friend to pay you back within 4 business days. If he doesnt then you go to the bank and cancel it. You have up to 5 business days to cancel.
Sad to say but i am one of those who will always ask my friends for money. I beg, cry, plead and for some reason i always forget to pay them back. And hey if they arent ballsy enough to ask for it back then why should i care.
I am not that cruel, just an opportunist.
The worst thing about lending is when you see her using that money on something completely different than what they tell you.
It’s not so much about trust as it is comfort. Friends dont feel they need to pay back money because they are friends…as friends we lend things out to each other all the time. And so for most money is the same.
Isn’t it sad that we as a society cant come to trust our very own friends to pay things back.
If i ever lend money it will be with strings attached. A charged interest at the very least and some kind of collateral.
I had to learn the hard way. I lent my buddy $20 bucks and he always kept forgetting to pay me back even after seeing him get a new XBox, PS3, and now an iPad. What to do 🙁
@big k: i never said i never been “stiffed” by a friend before. I think we all have at least once in our lives. I am just saying the people i surround myself with in my age we are pretty trustworthy.
@krissy i find that hard to believe that in your life time you have never been stiffed by a friend?
Maybe it’s just me but i have never had problems with lending. But then i guess we are responsible lender/borrowers.
Bingo! When you lend money to friends it will always, always, ALWAYS end up going badly. This is why my friends and i never think to bring it up with each other.