Three Things You Should Know Before You Loan Out Money
Hello hello! Gooood to see you here! Thanks for coming around. This topic is one I have been thinking of writing about since last month and I’m glad I’ve finally come around doing it. So you see, I have gist for you guys.
Yesterday, on Facebook, I wrote a post about how I lent someone a large amount of money some weeks back and the adverse effects that had on me. “Adverse effects” because he refused to pay back and to make matters worse, he wasn’t picking my calls for days till his line was finally switched off.
This period, as I explained in my post, was very traumatic for me. It was a substantial amount and it left me broke and almost totally unable to cater for my basic needs. Let’s not talk about the number of nights and days I cried and the amount of weight I lost. It was a terrible experience for me.
During that period, I learnt one of the most vital lessons about money. And I swore to never fall into that trap again. Although I promised myself not to loan out money again, I soon found out that this may not be entirely possible.
So, in order to avoid stories that touch when next you want to lend someone some money (if you do ever want to), ask yourself the following questions:
1. Can I do without this money?
When lending money, it is much important to consider if the money is something you can do without. As wisely and usually noted, don’t lend any money you can’t give. Put different factors into consideration. What if something happens and you can’t get your money back? Would you be able to continue living? Or would you fall into a stance of depression? If I had asked myself this question and sincerely answered, I definitely wouldn’t have given out that money. Your answer would tell you if you should lend that money or not.
2. Does he/she have a sure means of returning the money?
This might sound awkward but is paramount. If you’re looking at getting your money back within a specific time-frame, you may want to know how the borrower intends to get the money to pay you back. Do they earn a salary or are they expecting money from someone else? Ask them. Find out. What if they don’t have a means of paying back and would start telling stories when it’s time to pay? Definitely something you should avoid.
3. Do you know a close relative or friend of the person?
Lending money to someone whose personal family members or friends you don’t know could be dangerous. Consider the fact that the person could refuse to pay as promised or could even disappear like mine did. So if the person does, you have someone who could at least help with their whereabouts. Of course, it doesn’t guarantee that you will get your money back but it’ll increase your chances.
All in all, the best advice is for you not to lend money that you really cannot do without. What else did I miss out on? Please drop your comments ☺️