Notice The Proper Ethics Before Lending Money To Your Friends

Illustration (Karolina Grabowska/Pexels)

JAKARTA - Compassion is often present when you know that a close person, such as friends or family, is in need of borrowed money. The heart's intention is to help ease the burden, while the fear arises if the person cannot return the money at a later date.

It's okay to lend money to people. However, you also need to pay attention to the important things below before lending money to other people.

Check Personal Financial Situation

Check the condition of your personal finances before you dare to lend money to others. If your financial condition is 'dragging', you should not first lend money to friends. Refuse subtly and give honest reasons to them. Family or friends will definitely understand your situation.

Know the reason

Before lending money to a friend, it would be good if you know first why they borrowed money. How important is this person to need the money? Surely it would be better to lend money to those who really need it, than those who use the money for fun, right?

Learn from experience

If you've had the unpleasant experience of lending money to someone, it seems like you need to think twice when that person borrows your money again. Think of wisdom "not to fall into the same hole", right.

Repay

You might think about lending money for fear that if one day it gets hard, no one will help you. In fact, your financial condition is also limited. Remember, this assumption is not necessarily true. Provide explanations if you are in a situation where it is not possible to help materially.

Be Realistic

If there is no other way than to lend money, that means you must be prepared, for example, the loan money is not returned. This is the risk of people lending money. Just let it go. Think of the loan as a gift for those in need.