Look at Your Own Finances Before Lending Money
If when asking for time to think about lending them money you weren’t planning on a gentle way to say no, then you should start actually looking at your finances. If you think the person you’re lending money to is trustworthy but they’re just going through a rough patch then you could help them, of course, but only if your own finances are a-okay!
Can you cut out a chunk of your money? For how long? When do you think you should fill it back up? Where would the money come from? It goes without saying you shouldn’t dip into things such as retirement savings, emergency savings, or college funds.
Furthermore, what are the chances of you getting paid back? Truth it, most family loans go unpaid. If you aren’t in a position to permanently say goodbye to that money, don’t even think about lending it or you might end up in a worse spot than the person who asked you. Remember, family is supposed to stick up for one another.
If someone doesn’t care about the vulnerability you could face after lending you money, it’s probably not worth the hassle at all.
Word of advice: don’t perpetuate the cycle. If they can’t pay you back and you’re in financial trouble you might want to go to another family member to do the same! Does that sound like something you’d be comfortable doing?
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