This is a practical guide to know who they can lend money or not. Sometimes trust is not enough to know when you’ll get your money safely. These tips are designed to assess in your mind which people will pay you your money, which would be better to see it as a gift you did.
Investigate the reason and education.
If a person or family is asking money because of a problem is to identify if the loan was actually going to solve. Most of us are not usually open on the way in which we manage our money but to solve the problem of present money. Lend money to the person that you know has a future plan to repay and to avoid having to be in that situation again, as an emergency fund.
Do not pay money for a debt that will not end.
Many people borrow to get out of trouble with the end of the month but have no plan for this not to happen it will happen next month. Do not pay money that will be transferred to the prolongation of a problem and not the solution. Will be helping to avoid the inevitable and eventually you will not see your money.
Do not pay when you know you do not pay.
In the family there is always a person you know very well that you never pay and what it does is it expected to forget the debt to borrow again. If you know it’s very hard for people to pay you, take your instincts. Helps people better understand how to better manage money.
Do not contribute to a problem.
Do not pay money to someone that you know you will use those funds to maintain an addiction or a gambling problem. If you really want to help this person, help her get professional help.