Accepting late payments
If you’d given a loan to someone you didn’t know very well, would you have accepted late payments? Probably not. Taveras suggests sticking to the same approach when it comes to family or friends. “If you agree that the loan repayment is due every other Saturday, and the friend or family member pays you on Sunday, do not let it pass,” she adds. Think of it as a business arrangement and treat it accordingly.
Blaming the Borrower
Something you should definitely refrain from doing when loaning someone money, is blaming and berating them for the financial predicament they’re in. Nothing good will come of this anyway. It’s hard enough for a person to ask for financial support, they don’t need to be chastised “for creating the situation, just helped out of it,” Charnet explains.
Not asking why they need the money
You shouldn’t berate the borrower for needing money but this doesn’t mean you shouldn’t ask what the money is for, says Timo Wilson, CEO of ASAP Credit Solutions. Hopefully, the money you’re giving them is for something serious not a bad habit like gambling, drinking, or any other vices.
People might lie about the reasons they need the money for, but at least you did your part and asked, says Wilson.
