Lending money to family members....

• KR1245

  

  Have you done it? How did it work out?
• Scrawney

  Consider it a gift with no expectation of repayment.
• Con_Alma

  Scrawney;737311 wrote:Consider it a gift with no expectation of repayment.

  Agreed. If you aren't willing to give them the money tell them to look elsewhere for the "loan".
• iclfan2

  

  If you can't afford to never get it back, I wouldn't do it.
• Sonofanump

  This thread again?
• HitsRus

  

  don't ...unless as noted above.
• Belly35

  

  NO NO NO NO NO NO NO NO NO
• believer

  

  Not recommended.
• Rotinaj

  

  Depends how much it is and if you KNOW this person to be dependable.
• Tiger2003

  

  Sonofanump;737338 wrote:This thread again?

  
  This
• fan_from_texas

  Generally a bad idea. Give it as a gift, and if they want to repay, that's great. But once money gets involved, there's a very good chance there will be family awkwardness down the line.
• Cat Food Flambe'

  

  Will agree that it's usually better to give than to lend unless the borrower has a long-time record of financial responsibility.
  
  One exception - my father loaned my wife and I the $10K I needed to go back to school for my second degree. We very carefully drew up a formal loan agreement including terms of repayment (interest-only until I got my second tuition reimbursement check from my employer), and specifically listed it in a declaration of his assets. - in short, everyone was aware of the arrangement We even reported the interest income on his taxes.
  
  I treated this just as I would any other debt and was never late on a interest payment. After the second quarter, I essentially signed over my tuition reimbursement checks to Dad as the principle repayment, and was all set to to pay him back at $400 per month for the balance not covered by TR. My "re-graduation" present was a letter from Dad's attorney stating that the balance of debt was canceled.
  
  Dad made market-rate interest on his savings, the money stayed in the family, and I got a degree that essentially doubled my income within three years. It worked out well - this time!
• Curly J

  

  I never loan my family money. If they need it I give it to them.