My advice, after listening to many clients, is: 1) Don't lend the money!
(If you DO, make sure you have collateral, such as a first mortgage, promissory
note, etc.). However, will you actually have the objective fortitude to
"foreclose" on the borrower if he fails to pay? Having said that, you
will undoubtedly abandon common sense and WILL probably lend the money, and so,
2) plan on your "loan" being a gift. Don't expect repayment; that
will keep pressure from destroying family relationships. Keep in mind that some
"loans" are not necessarily helpful to the borrower, but simply enable
them to continue to go into debt. Finally, NEVER co-sign on a loan with the
borrower unless you understand that you are fully liable to repay the entire
loan if he cannot do so.
We all need help from time to time. The best thing you can do is to
care about them and offer your help. Even if you have a ton of cash and want to
keep every penny of it in the bank because you are frightened of the future,
have no faith that you will be blessed for helping other, or have never read
James chapter 5 then you can still care about other people.Your
advice, since you are SOOO Smart, might be what they need to hear.Pretending that there are not problems out there and turning a blind eye and
only "surrounding yourself with people who don't have any needs" is
kind of a lame way to live.We are all in this together. Let's
start helping each other in the ways we can.That makes sense right?
Or am I crazy?