Here are three reasons it is advisable to never loan money to family and friends.
1. It might be difficult to ask for the money back
f you lend money to a friend or family member you respect a lot, you might not want to ask for the money in order not to offend the borrower.
Even if you are worried about the loan repayment, you’ll most likely keep it to yourself because you don’t want to upset your friend.
2. It can make family gatherings awkward
Imagine being in a family meeting with a family member that owes you some money and you still can’t ask him or her about the loan, what an awkward moment that would be.
3. The borrower may ask for more
Due to the blood relationship between you and the borrower, it will be pretty easy for him/her to come to you again when he or she needs more loan.