Rules to Follow When Lending Money to Friends and Family

 

借钱给家人和朋友的法则

 

Lend Just What You Can Afford to Lose

 

借出的数额在你能承受的范围内

 

Your friend or family member may check all the boxesfor being trustworthy, financially stable and reliable, but "things can happen that prevent them from paying you back as originally planned," says Byron Ellis, a Certified Financial Planner （TM）and managing director at Ellis and Ellis, a division of United Capital Financial Advisers in The Woodlands, Texas.

 

If your loanee does get in a bind, a best friend or family member is going to be relegated to the end of the payback line, "behindthe mortgage company, the credit cards, the auto loans, etc.," says Ellis. Now,imagine your stress level and the tension that would rise between you both ifyou actually needed that money—and she couldn't repay you.

 

Bottom line: Be prepared for the worst by giving only an amount that, if never returned, wouldn't jeopardize your own savings goals, bill-paying ability or other relationships.