I’ve been taught to be about my money. Not from a financial standpoint because I still have problems with my spending and saving. But moreso about making it and being smart with what I spend money on. I wish I was a frugalista but I’m not. I splurge more than I should but I am serious about loaning money to folk. If you ask me to LEND you money or give you a cash advance, I intend on getting it back.
We all have hard times. And what’s a real friend if they aren’t for you in your time of need? But St. Louis financial guru Tracey Weeks says this:
“Loaning money to family and friends is absolutely a no-no, especially if they do not have the means to pay you back. If they have no job and no steady income, how are they supposed to pay you back? When they get their income tax check? That is such a lie. They won’t pay you back then because they will find other things to do with the money. Be money smart. Do not loan money to friends and family.
Not only does Tracey say you should not loan money to family or friends, she also says you should never co-sign for a family member or friend.
“When you co-sign for someone, you are taking the responsibility to the car note or financial obligation if they do not pay. And oftentimes when a person needs a co-signer, it is because they do not pay the bills they have. Just say no!”
Kind of harsh! But it makes absolute sense. Ms. Weeks states that if you simply must loan money to family or friends, write a contract and have them sign it and have it notarized. That way, if the loan is not paid, you can take them to small claims court in order to get your money back.
For more information on how to “properly” loan family and friends money and for additional tips, click HERE!