Clutch fans, I would like to hear your opinion on subject that involves dealing with money. Back in 2006/2007, I did something terribly stupid that could've screwed up my credit and my finances. I had a "good" friend of mine- a guy who I used to work with- was in debt (paying for credits cards and trying to pay off for his truck). I guess I can say the only person he knew he could convince to help him get out of debt was me. He wanted to me to lend him $5,000 so he could "get out of debt" quicker. So, as stupid as this sounds, I took out a loan so I can lend him $5,000 and he promised to pay me back. After working with him for a few months, he eventually payed me back in 7 months ( about 600-800 a month) Now recently, this same guy just called me and asked me take out another loan. He was rambling about how he is still paying for his credit card and has house debt. And this time, I said no, and I told him no because I didn't want to deal with all that again. Whats funny is that he "prepared" this loan and all he needed is my signature. He was trying to convince me, telling me giving him this loan will build my "credit". I don't need to give this guy a loan to build my credit. Seriously, why is this guy in such debt? Now, hes crying saying, " I aint got no money man, now I'm going to be screwed." And after I've said No to him numerous times, he KEEPS ASKING THE SAME QUESTIONS about the giving him the loan. Don't you guys think its pathetic how he keeps asking me for money? I know it was my fault for lending in the first place but still. Am I overreacting? How would you guys react to this sort of situation? Would you give a loan to your friend, even if he/she would pay you back?
It's very pathetic that he keeps asking. You are not overreacting. You are not a ****ing bank. I would not lend money to a friend. He dug himself into his situation, he needs to pull himself out.
Absolutely not for a second loan. You were a damn good friend to take out ONE $5000 loan, and he wants you to take out another of equal/higher value? No way. He's gotta understand that he's going to have to get himself out of this mess. He can't keep leaning on everyone like a crutch for all of his life. As much as you might want to help him, I think you've done more than enough. The rest is up to him. signed, - years and years of bitter experience watching my half-sister of 30 years old live at home with us for 4-5 years and constantly asking my mom/dad for money because she was a high school dropout that never bothered to help herself.
you saved him once already. he didn't learn from his mistake. don't bail him out again. this time, you might not be so lucky about getting your money back. did you even charge him interest? it's never a good idea to lend that much to anyone, even your best friend of family member if you are expecting to get repaid.
Didn't really charge him interest, but we worked at a restaurant where we shared tips so I got most of the tips if we received any on that day.
You are VERY lucky you got the money back last time. You're wise not to take that chance again. The only thing worse than mixing friends with money is mixing family with money.
you are super nice to loan money to your friend, but it seems like he might be trying to take advantage of you now. im not a one-upper type, but i have given various friends over 25k just in the past year because it always makes me feel terrible when they aren't doing well financially. i dont even give it out as a loan because i know the chances of getting paid back are slim. luckily every person who's needed money hasn't asked for any more. i'm sure you feel really bad for them too, and he knows that and is using it against you.
about 7 years ago, my wife's sister married a guy who we later found out had about $40K in debt. now his debt wasn't all stupidity - he borrowed money on his credit cards to pay for college tuition as well as paid for his premature niece's hospital bills. anyways my wife and I had the money but they didn't want to borrow from us - which again i respected. but the best thing I did for them is help them get hooked up with credit counseling service. those guys helped consolidate the loans and at a much lower interest rate. fast forward 3 yrs and they paid off everything. if you want to be a friend - accompany this guy to a meeting and help plan a long term solution. then if he needs help with a payment or 2, you can decide if you want to be involved. but this way no borrowing large amounts, and you still look like a good guy...
