MSE Guide: Lending Money to Family and Friends

MSE_Rosie

This is the place to discuss the new Lending Money to Family and Friends guide.

We'd love to hear your thoughts, personal experiences, and general feedback. 

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Brie

point 3, other concerns - are payday loans still a thing? I thought they'd been stopped and basically been replaced by BNPL.

I got stung decades back with a short term informal loan to my roommate's boyfriend. Only needed $100 until he got paid. Well weeks turned to months and finally he left the country. He wasn't a nice person and me warning my room mate about him nearly ruined our friendship. Thankfully she eventually dumped him and that resolved much but didn't get me my money back.

Fast forward quite a few years and a friend who I knew was always short of cash started talking about taking out a payday loan as he couldn't pay his rent in full. We were both in a lottery syndicate (yes, I know…) and so I told him I'd give him my ticket money til the end of the year and he could make my contributions to the syndicate. So effectively I gave him a no interest loan. And no we never did get the big lottery win.