Have you ever given someone a loan before? We all have. Did that person return the money when he/she promised to do so? Some did, but many did not. I make bold to declare that we all have had more experiences of people defaulting on their debts than liquidating them. There are even instances where debtors pretend to have forgotten that they owed someone or downright refused to repay.

One would think that with the decay in moral values regarding money today in our society, many would be careful with their hard earned money. Sadly this is not the case. Many of us are suckers for a good “person in need” story. When you also consider that it is those who are close to us who come to us it can be extremely difficult to say no. This is Africa; we are known for being our brother’s keeper.

Giving loans is definitely not in your best interest. This is because most times you are loaning out your savings, monies you have kept aside that should be used to multiply into wealth for you. You cannot give a loan to someone from that part of your income meant to take care of your living expenses because it is too risky. How would you survive the month if the person defaults? Thus you take from your savings to help others.

The painful part is that many people experience disappointment as the funds are not returned as at when due; or alternatively they are returned in so many small and delayed installments that the money ends up being frittered away because it is no longer substantial. One can never become rich by constantly depleting your savings to help others.

This is precisely one of the major reasons why there are squabbles in many families. Negative emotions begin to run riot in the minds of creditors when their loved ones default…anger, hatred, disgust and disappointment. This is definitely not healthy. Money happens to be one of the major reasons for divorce and disaffection in many families.

One also needs to stop trying to play trying to play the role of banker in the lives of your loved ones and associates. The banks are extremely knowledgeable when it comes to the business of granting loans and have put systems and procedures in place to ensure they recover their money. Sadly the same cannot be said of you. You would be well advised to leave the business of giving loans to them.

A more satisfactory approach would be to give anyone that asks you for a loan a cash gift instead. Give them an amount that they do not require to pay back. Ensure that this is an amount that you can afford to give away. This frees you from the feeling of guilt that may arise if you completely ignore pleas and cries for help.

Giving cash gifts is actually one of the secrets of the wealthy. They do not invest substantial sums into the lives of others in the form of loans, rather they give what they can afford, thereby putting their funds into more profitable ventures.

Set aside some funds monthly for this purpose in your budget which can be termed, “Donations & Gifts.” Tell everyone that comes that it is your personal policy not to give loans; rather you give donations which they do not have to repay. There is almost no one who would refuse to get something for nothing. They will take the gift and go to someone else to give them a loan and you will still be in their “good books.”

The more you invest into ventures that will grow your wealth the richer you will become. No money earned is ever enough so we must plug all the leaks and loopholes and free up money for investment. If one spends all he earns or loans out his savings poverty will be the end result. Stop this unwholesome practice today and begin to see a wealth exchange transfer come into your life as you invest the freed funds wisely!

Kenneth Doghudje

http://businessdayonline.com/2014/12/should-you-continue-to-give-loans-to-friends-relatives/#.VI-nAivF_SU

This article really speaks to me; I have lost some hard-earned cash due to what the Yorubas call 'Oju-Anu' (someone should me translate this please ) in the past and even, recent past.

I have resorted to modest cash gifts WHEN possible. This article only reinforces my resolve.

I do not give and also do not ask, everybody close to me knows that. My money is better where it is, in my pocket.

This thread is all about me..

Gave someone a loan of 100k this last April,till now,the person hasn't paid a dime,and funniest thing is that she didn't mention anything about it again..

This thread will only harden my heart about loan giving again,I won't loan out a money I can't let go.

True talk

Yomieluv:
I won't loan out a money I can't let go.

My thoughts exactly!

ok

If they are credit worthy

#mcc

If they pay back.... No p

It dependz on d relative in qztn

but op, the bible Says.....give to everyone who ask and from him who wants do nt withhood....sumtin lyk dat.

I will stop when they start becoming a liability for me..

If you have the money, never stop giving, no mata wot.. It will open doors for u.. Trust me

The worst is your ex...that money is bye bye

No 1 rule in finance and how to get and maintain riches.

Read my lips.......


DO NOT BORROW MORE THAN WHAT YOU CAN AFFORD TO DASH!!!!!!!

Give to them, but loan is a no no.


I can't fight or get them arrested if dey refuse to pay .

So no loan to them except its so important and collateral must be involve.

Only if they are paying back without hassle

y not

Y not, as long as u get paid back

Yea

I hate giving out loans cuz I dunno hw to drag person for money. Now, I only give out amounts I can overlook. So if I loan someone, I tell myself I just misplaced d money. The last loan I gave out was #300. He didn't return as usual and am also not bothered...

gbodimowo:
Only if they are paying back without hassle

true talk

When I loan out my hard earned money to my families and friends, I erase the thoughts of them returning it.....if they do return it , fine.. but if they don't, I would take it as one of those things in life....

don't loan out money you cant let go or dash..for the ones u made mistake on ask the person so as to recover all or part of your money..

I've loaned friends money severally only to turn the friendship sour. So now,I'll just give what I can spare and forget it

Here's the rule - only borrow your friends or relatives the money that you can easily write off or give away if they don't pay back. By this you'll maintain your relationship with them. It works for me.

My relatives are way better tho,I don't mind loaning them money

A lady friend of mine and her bestfriend have not been on speaking terms for over a year now because her frnd borrowed 45k from her for her school fees and has since refused to pay....

The funniest thing is my friend's brother saw her @ shoprite buying stuffs last month and the girl even gave him 1k for TP buh to pay money na wahala

About two weeks ago, when my friend called her to ask about her money, she said she had been in the hospital for a while now and she had no money....