Have you ever wanted to say no when a friend asks you for a loan?
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Be kind above all.
Realize that it was probably hard for your friend to ask for a loan, even if your friend has formed a bad habit of relying on you.
If you don't want to lend any money, tell your friend the truth.
There are a number of real reasons for why you cannot lend money to a friend, including:
- I'm sorry but I don't have enough money to spare right now."
- I'm sorry but last time I loaned you money, I didn't get any payment back from you/it took you six months to pay me back and I can't wait that long to be reimbursed.
- It's not payday until the end of next week and I have only budgeted enough for my household needs until then.
- I've got a large bill due this week/month and that must be paid first.
If your friend starts demanding money from you, ask them to go away and have a think about it and about the ways that they might be able to rearrange their money affairs to see themselves through. Or suggest that they might like to ask somebody else this time.
If you do get to the stage of offering to help them out, some good ideas to consider include:
- Setting a deadline for repayment.
- Requesting regular payback dates.
- Informing them that this is a once-only/last time loan.
- Requesting that they see a financial adviser to sort out their finances (offer to go with them if wished)
It is fine to apologize for knocking back a request for a loan or for asking for conditions around provision of a loan. Just don't overdo this or make it seem as if you're doing your friend a favor, or your generosity may be viewed as guilt-laden and you might be vulnerable to not being paid back in full or at all and open to more requests. Handle it with care, kindness but be firm as well.
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