If you lend money to family, don’t expect to see all of it again

Personal Finance

The study also showed that most loans come from parents: About 76 percent of men reported borrowing from their parents, compared with 63 percent of women. (Coming in a distant second, at about 10 percent for both sexes: borrowing from a sibling.)

Even when it’s your child, experts say, you need to make sure you can afford to lose the money.

“Don’t go into debt to finance your child’s debt,” said Brian Karimzad, vice president of research at LendingTree.

It’s also important to make a tough-love evaluation of whether the loan is needed, Keeler said. While some situations are justified, other times it’s the child’s own actions that set the stage for financial woes.

“Sometimes it’s tough to say no, but it’s the right thing to do,” said Keeler. “Maybe the person needs to make better lifestyle choices.

“If they have poor financial habits, you shouldn’t enable it.”

Source link

Products You May Like

Articles You May Like

There’s still time to lower your tax bill with this last-minute move
Airbnb (ABNB) earnings Q1 2021
Poshmark (POSH) and ThredUP (TDUP) Q1 2021 earnings
Disney (DIS) Q2 2021 earnings
Mega Millions jackpot is $430 million. Avoid these blunders if you win

Leave a Reply

Your email address will not be published. Required fields are marked *