Experts Lend A Hand With Tips On Lending Money

Experts Lend a​ Hand With Tips On Lending Money
The smallest bills can cause the​ biggest stress,​ especially at​ the​ end of​ the​ month when due dates seem to​ come faster than paydays .​
When the​ financial outlook is​ uncertain,​ many choose to​ reach out to​ friends and family for short-term help .​
Lending money to​ friends is​ a​ common practice and although people often have the​ best of​ intentions,​ it​ can sometimes result in​ sticky situations .​
According to​ a​ recent study by IPSOS and PayPal,​ 71 percent of​ Americans have loaned money to​ family members and friends .​
It may seem harmless to​ help a​ friend make a​ car payment or​ assist a​ co-worker going through a​ divorce who just needs a​ little help .​
But a​ temporary crisis isn't always so temporary-and can quickly become an​ uncomfortable situation if​ the​ lender has to​ ask for the​ money to​ be repaid .​
As easy as​ it​ is​ to​ lend to​ someone you know well,​ it​ can be just as​ hard to​ pester them to​ pay you back.
According to​ etiquette experts Kim Izzo and Ceri Marsh,​ co-authors of​ the​ Fabulous Girl's Guide to​ Decorumand the​ Fabulous Girl's Guide to​ Grace under Pressure,​ money issues between friends and family members are difficult because money is​ inherently an​ emotional situation for both parties .​
In fact,​ according to​ the​ survey,​ 57 percent of​ Americans have seen a​ relationship end because one person owed the​ other money .​
Everyone wants to​ be a​ good friend,​ but no one enjoys feeling like someone is​ taking advantage of​ their generosity,​ say Izzo and Marsh .​
But money lending can be done right,​ continues Izzo .​
We recommend setting some simple ground rules when considering the​ possibility of​ lending money .​
These ground rules can take some of​ the​ stress out of​ lending to​ friends and family,​ and even make it​ into a​ positive experience.
Marsh and Izzo offer several tips for conducting successful financial transactions with friends and family:
• If you're loaning money to​ someone close to​ you and if​ you're financially able,​ consider making it​ a​ gift rather than a​ loan .​
If not,​ make it​ clear you expect to​ be paid back.
• To make collecting a​ debt easier and more comfortable,​ consider using a​ service called PayPal .​
This makes it​ possible to​ send and receive payments online .​
With PayPal,​ you can send e-mail reminders to​ the​ borrower .​
The lender can then get the​ money back instantly via email .​
• Never co-sign a​ loan or​ credit card application for someone else without clear,​ written parameters,​ and always maintain a​ business-like environment.
• Don't lend beyond your means .​
Only lend money that you don't need back immediately so as​ not to​ ruin your credit or​ your relationship with the​ borrower .​
It's possible to​ help out a​ friend or​ relative in​ a​ way that won't compromise a​ relationship,​ while still making sure you're not left empty-handed,​ says Marsh .​
Be fair with both the​ borrower and your own bank account,​ and hold to​ your agreements .​
This will help keep both the​ relationship and your wallet intact.

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