Should You Give Money to Family Members? By Kimberly Palmer
Borrowing money is never simple, but when you borrow from friends or family members, it also has the potential to destroy relationships.
First, decide if you can afford to give help.
Consider saying "No"--firmly.
Look for nonmonetary alternatives.
Put all loans and gifts in writing.
Consider what might be expected in return.
Learn from mistakes.
The lesson: Family loans often don't get paid back, which can badly strain relationships.
The lesson: Know your limits.
The lesson: Sometimes giving a loan works out well for both parties. Also, written agreements can help.
The bottom line: Borrowing or lending money to family members can cause problems that go well beyond money.
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