Handling Money vs Lending

[Simon Peter]

Hi folks,

Praise the Lord!

I am practicing the principle of saving money.

When paid, I do a 10-10-10-70.

10% goes to the tithe/church

10% saving account

10% for emergencies like health

70% bills & utilities in and out of home. Am not married yet. So I spend it the way I feel.

Someone comes over to borrow money, this is someone I have prayed with at my former church. So he is a friend. I find it hard to lend money again.

How would you manage this, remember we need these friends.

Cheers,

Simon.

[Guest shiloh357]

If you are not in a position that you can lend money to people, then you should not do it. If he is truly your friend, he will understand that you just can't do it.

If you choose to loan it, and if it is a signficant amount of money, I would work out something with him in writing as to the conditions of repayment. You are the lender, so you are the one who sets the terms. He does not dictate the terms of his repayment. I would not be unduly demanding and unreasonable, but it is a loan and you have the right to expect repayment. So as soon as he is able, he should begin following the terms of his repayment to you. Keep up with him, and make sure he knows that you remember and that you are holding him accountable. Don't be a nag, but just ask him how things are going, just so he knows you are watching. If he is your friend, he will not need much prodding to repay his loan.

I would not loan money to someone who has NO prospect of repaying anytime in the foreseeable future. If it is not too hard on your finances, just give him the money and let him know that you are blessing him as a brother in Christ and that repayment is not necessary.

[Simon Peter]

Thank you Shiloh. I'll make adjustments. I have let him take that money. And am now stricter on fresh borrowers.

Regards,

Simon.

If you are not in a position that you can lend money to people, then you should not do it. If he is truly your friend, he will understand that you just can't do it.

If you choose to loan it, and if it is a signficant amount of money, I would work out something with him in writing as to the conditions of repayment. You are the lender, so you are the one who sets the terms. He does not dictate the terms of his repayment. I would not be unduly demanding and unreasonable, but it is a loan and you have the right to expect repayment. So as soon as he is able, he should begin following the terms of his repayment to you. Keep up with him, and make sure he knows that you remember and that you are holding him accountable. Don't be a nag, but just ask him how things are going, just so he knows you are watching. If he is your friend, he will not need much prodding to repay his loan.

I would not loan money to someone who has NO prospect of repaying anytime in the foreseeable future. If it is not too hard on your finances, just give him the money and let him know that you are blessing him as a brother in Christ and that repayment is not necessary.

[OneLight]

I have one simple rule, never loan money you cannot afford to loose.

[bobby0]

I would save more like 50% if I were you. And only give 5% or less to the basket. I think $10 a week is all they need.

Get it in writing and sign it and charge interest and be sure to work out a payment schedule ahead of time and be sure they make payments on time.

You worked hard for the money and could be investing it elsewhere making money for you instead of giving it away. Charging them a fee ifor using your money would be expected. You know what credit card rates are. There is likely a reason your friend can't get a loan (or free money) anywhere else.

And if he can't pay you back he should give you something of the same value, like his car.

Edited February 13, 2012 by bobby0