From the course: Personal Finance Tips Weekly

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Should you loan money to loved ones?

Should you loan money to loved ones?

From the course: Personal Finance Tips Weekly

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Should you loan money to loved ones?

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- When a loved one is in financial trouble, it's natural to want to help. But we've all heard horror stories about how that help as gone awry, causing hurt feelings, resentment, maybe even a complete break. So how can we navigate this very thorny situation? Hopefully, with our loved one back on firm financial ground and a relationship with them in tact. Follow these four tips. One, don't rush into a specific commitment. If a loved one asks for a loan or if you pick up on their financial distress and offer to help, make sure that you get the facts of the situation first. Important facts include whether this is a one-time or ongoing issue, how the issue came to be, and if the underlying cause has been resolved. Think carefully before getting financial entangled in a problem that doesn't yet have a clear course of action to resolve it. We also want to clearly assess the extend of our own ability to help. We may not have either the means or inclination to totally rescue our loved one from…

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