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Comment by anon4 | Hacker News Reader

Don't fall into debt. If you must fall into debt, then do so to a friend at no interest. If you still have to fall into debt, do so to a reputable bank and pay it off as quick as you can - sell whatever assets you have if you must.

This of course applies to private individuals, not companies, banks or other institutions.

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I would advise people not to lend money to friends and family. I have done it several times and every time it led to problems and a lot of pain.

Giving money, that can work. With a glad heart.

People won't accept gifts. Give a "loan" but treat it like a gift --never mention the balance ask for the repayments.

From my experience even that doesn't work. People will feel guilty about not paying and resent you even if you stay quiet. But they also won't pay. At least that's my experience with two members of family and one business partner.

Agreed. I have a sister who every year around Christmas, like clockwork, begs for a "loan" with the promise of "I'll pay you back with my tax refund". Many years and thousands of dollars later, in 2015 I finally said no. We no longer speak to each other, and I was publicly (via Facebook) labeled the ungrateful brother who only thinks of himself.

I tell them "Pay it forward". That way they can accept it and agree to pay it back - but sometime in the unspecified future.

Tread loans to family and friends as gifts. Treat any payments you receive in return as gifts of gratitude. If you're not comfortable with this idea then you are not comfortable with loaning money to your friends and family.

I never lend money to friends or family. Either I give them money or tell them I cannot help.

Polonius: Neither a borrower nor a lender be, For loan oft loses both itself and friend, And borrowing dulls the edge of husbandry.

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