A great article! Read more at the link.
“Some people decide they’ll never make personal loans. If they’re asked, they say something like, “Sorry, but it’s my policy never to lend money to people I know.” If you think this is too harsh, you can offer to help in some other way.
Not all loans between family and friends end in disaster, of course. In fact, although I’ve never been able to find stats on the subject, I’d be willing to wager that most loans go smoothly. But the potential for trouble is so great that you should think twice before lending (or borrowing) money. How would it affect your finances — and your friendship?”