When You Loan Money to Family

Imagine that a family member comes to you with a sad story regarding finances, and they need a loan for a car payment, a house payment, to cover a phone bill, or for something they've always wanted. A deep sense of obligation, kindness, and the love of family prompts you to pull out your checkbook and write a check to cover the cost. After all, you're family, and family members should be trusted to fulfill a loan given to other family members. You expect to get the money back since they asked if they could borrow the money, but the word borrow, and the word loan, might not have the meaning you thought it did.

Many people carelessly use the word borrow when asking for items or a loan they know they'll never pay back, and giving a loan to relatives is sometimes the beginning of the end of relationships. Sometimes family members feel they can get away with not paying back a loan to other family members, because no matter what, family is always family, but this assumption couldn't be further from the truth. Sadly, families have been ripped apart at the seams because of unpaid loans, and when you loan money to family, you must be prepared in advance for the chance that you won't get that money back.

The generous act of providing a loan to family members, friends, or others who are down on their luck, just might make you realize that people are not always who they appear to be, especially if they don't always pay back debts. Brothers, sisters, kids, and even parents can end up conveniently overlooking a loan, and the following true story is an account of my husband's experience of loaning money to his brother.

Money for Nothing and Living Practically for Free

Before you loan money to a family member, consider the fact that you may not get it back.

Credit: muresan113

Copyright: muresan113 - SXC