Written by: Timothy G.
You’ve probably been in a situation where a friend or family member asks to borrow money and you don’t know whether to say yes or no. On one hand, you don’t want to be stingy, but on the other hand, you don’t want to put yourself in a difficult financial situation. So, when is it okay to say no to someone’s request for financial assistance?
There are a few things you should take into consideration before Saying “no.” Here are three questions to ask yourself before making a decision:
1. Can I Afford It?
This is probably the most important question you can ask yourself. If lending the money will put you in a tough spot financially, it’s probably not worth it. Remember, if they can’t afford to repay you, it will ultimately come out of your pocket.
2. What is their Repayment History Like?
Do they have a history of repaying debts in a timely manner? If not, there’s a greater chance that they’ll have difficulty repaying what they owe you. This isn’t to say that you shouldn’t help them out if they’re going through a tough time financially, but you should be aware of the risks involved.
3. How Close am I with this Person?
Are we talking about a close friend or family member who you know would never intentionally put you in a difficult position? Or is this someone who you aren’t particularly close with and who has been known to take advantage of people in the past? Obviously, there’s more risk involved in lending money to someone who doesn’t have your best interests at heart.
Ultimately, the decision comes down to what’s best for you and your financial wellbeing. If lending the money will put you in a difficult position or if there’s reason to believe that they won’t be able to repay what they owe you, it’s probably best to say no.