Quote:
Originally Posted by Slava
Before I say this, I wouldn't lend money to a friend (or family) for a vacation.
That said, there are some pretty harsh lines here. Its almost as though no one here would ever lend money to anyone? I definitely see the issue, but there is also a line there where I would lend money to friends if they really needed it and were in bad circumstances. For some of my friends to even ask me for a loan would mean that they were in a bad spot. I wouldn't do it for just anyone, but some of those guys are like family and I would want to help them however possible.
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The word Character comes to mind when I read your post. When you know the person well with whom you are lending money, and know them to be of good character, then the risk of recovering your money is probably minimal. However, I believe it is still prudent to put some paper in place, outlining the terms, if the sum is sizeable and may impact your own financial situation.
As for advising young people about what to do with regard to lending significant sums of money to friends or relatives, I still think it is not a bad idea to instill a strong sense of caution and reluctance in general.