How To Give Money To a Loved One in Financial Need
- August 19, 2009
- 1,810 Views
from
Paul Powers
(and 3 others) Subscribe
- Writer Jason Nemeth
-
Voice Over Artist
Ishaq Clayton
-
Music
Jiri Janis
It’s not always a good idea to lend money to family or friends, but there’s a way to get it right.
You Will Need
- A loved one
- Money
- Willingness
- A contract
- A third-party collector (optional)
Step 1
Determine your capability to lend the money, and do so only if your own finances are in order and your bills are paid.
Step 2
Determine if you are uncomfortable with lending the money or feel pressured. It may come back and hurt the relationship.
Consider making the money a one-time gift instead of a loan if you are worried that payback might complicate the relationship.
Step 3
Be upfront about interest payments and when the loan is due.
Step 4
Put the agreed terms in writing and make sure both parties have signed copies of the contract.
Consider using a third party – a lawyer or other intermediary – to oversee collection of the debt.
Step 5
Educate yourself about tax issues related to loan interest and gift-giving so that you are aware of any additional tax burden or write-off you might incur.
In The Inferno, Dante described a special section of Hell that was reserved for usurers, money lenders who charge exorbitant rates of interest.
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Comments (1)
The angles you used for in Step 2 are great!
over 2 years ago by HeatherM
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