Lending money
1. First and foremost , remember , you are not a bank
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2. With item 1. in mind remember this dialogue
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Them: Could you loan me some money
You: Gee I'd really like to help you seeing as we are friends/relatives BUT , I'm going to have to pass
Them: But why, why !?
You : Because I would not be able to hurt you if you did not pay me back.
3. With item 2 in mind, get it crystal clear in everyone's mind that this is a loan
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And loans have to be paid back. Tony Soprano breaks your legs, the bank takes your house.
What most people would be looking for is a forgivable loan, and that you , as a friend /relative would not take their house or break their legs if they did not pay.
4. Make sure the terms of the loan are understood.
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In other words, the payment amount, the date on which each payment is due, and consequences of failure to pay
5. Never loan out more than you can afford to lose.
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