Don’t Lend to Friends
July 22, 2008 by Mr. ToughMoneyLove
Filed under Loans and Borrowing
Today’s dysfunctional behavior pertains to deadbeat “friends” asking for a loan. “SomewhereinDC” posted this query this morning on an MSN Money finance message board:
“A friend of mine has gotten herself into pretty bad credit card debt. We have been friends for over a year, and I’ve gotten to know her as a responsible person. She is actively trying to pay off her credit card debt of approx $12K. She has asked me for help in paying off one of her cards. She is asking me to lend her $2,400 so she can close off the card with the highest interest rate (25%). In return, she would pay me back $200 a month for one year until fully paid off (I will not charge her interest b/c $2,400 is nothing to me and I won’t miss a couple hundred of dollars in interest) “My question to all of you is this: Should I lend her the money? In your opinion or previous experience, is this a wise thing to do? Is this a great way to ruin a friendship?”
