RE: Mixing Money With Friendship
In my opinion.
if you want to lend money to friends, there are 5 things we must think about.
Discuss options other than borrowing money. Money is not always the only solution when it comes to financial difficulties. You can still discuss some other ways to solve financial problems without spending large amounts of money.
Lend some money that you can tolerate if you do not get paid. When lending money to friends or family, let's say you give it. This is because you may not receive it again.
Explain the pattern of payment to your relatives. Make a plan for the debt repayment scheme including the date of repayment. You should also discuss the steps if he does not end up paying the debt.
Black on white. If the loan is large, then make an agreement with it. The agreement may bind him as he avoids paying later on.
Anticipate problems that will arise. Let the borrower do what he has to do.
While you must prepare yourself for any possibilities including losses that can be caused when your friend does not pay the debt.