My old man used to say that if you don't like someone and don't want to see them again.....lend them $100!!!!
It is difficult with friends, I have never borrowed off friends as it just doesn't feel right for me. If a friend needed some money, I agree, give it as a gift and be done with it.
A few years ago I loaned $20,000 to a very close friend who had leased a couple of cars and things were tight at the time, agreed that it was for a month or two.
6 months later he told me that his wife did not know about the loan but he would pay me $1,000 at a time. At this point he was also telling me that he was getting way ahead of his mortgage and the wife was so pleased about it that they were going to redraw some money and go on a great holiday as a reward for saving.
Money eventually repaid 3 years later!!!
If you want to change the dynamics of a friendship or see the other side of people - lend them money!
If they are that close - give it to them or just say NO - lending to friends is tricky.
If no-one else will lend them money, eg banks, credit cards, etc - why should the friendship be the collateral?
