Read this before you Borrow anyone Money again
If you are a soft hearted person, there’s every tendency that you will get to borrow money to a family, friend or colleague at least once in a year.
Studies have shown that about 70% of money borrowed to either family, friends or colleagues were never paid back, rather, it created more enmity among a one time good relationship.
Personally, I have more than 9 People who I borrowed money to in the past and never paid me back. Two cases happened this year 😂😂
Both of these my friends are owing me 100k and 80k respectively and when I saw that it was turning to quarrel, I just let it go.
The recent one is a friend of mine who had issues with his business and came to me for help, I borrowed him the 100k and he promised to pay back within one month which I knew he was capable but till today he hasn’t paid back, he only gave me 30k after about 3 months of fight and quarrel.
I know there are a lot of us going through same struggle but here’s the thing I learnt to do recently and it’s been helpful.
Please note that I’m talking of personal fund o, don’t mess with your business money.
So before you borrow money to anyone, take your time to ask these questions: (These includes your boyfriend or girlfriend oo Hhmmm😂😂)
1. Only borrow what you can afford. Don’t borrow money meant for a project to your family, friends or colleagues.
Borrow only what you can afford, by what you can afford I mean the amount that will not affect your financial life when you don’t get paid back. (Borrow only a spare money)
I wish I knew this before now😭
2. Ask detailed questions about WHAT exactly the money will be used for, HOW the person intends to pay back and WHEN do they Intend to pay back.
Don’t just end at asking questions, do a background check to know if what they said is true.
3. For my Christian brethren, Do not charge interest if the person is Poor (It is unbiblical to charge Interest on a loan given to your struggling family or friends (Those in same faith with you) (Exodus 22:25)
4. Discuss terms of repayment. Get a detailed terms of repayment, how do they Intend to pay back, is it in installment or in lump sum? Don’t assume the person will pay you back at once. Discuss the terms with them.
5. Get it in writing and ask for a collateral: Don’t make the mistake of borrowing money blindly again, it is a foolish financial decision.
Put every terms of the agreement on writing and don’t joke with getting a collateral.
For small loans, think of what the person has that equates the amount you are lending them.
Imagine if those my friends that were owning me had maybe their international passport or school certificates given to me as collateral 😂😂
It’s weird but very necessary.
6. Talk about worst case scenario: OK you might Collect all the collateral in the world and the person still doesn’t meet up to pay back. What do you do?
Both of you should discuss such instances and arrive at a conclusion.
In conclusion, because of the struggle that comes with repayment of loans, most times it’s better you just dash the person the one you can afford and forget about repayment.
That’s what I do sometimes, after all we are meant to give. God blesses us to bless others but don’t be foolish as to go blessing others while you fall back to poverty.
So what’s your take on this, do you agree or disagree? What’s your story from borrowing money?
Share with us in the comment section.