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Each individual is close to their family in their own way. Some are closer than others. Now being close to your relatives is never a bad thing, it would actually be a very good thing. But the problem arises when one of them is asking you to lend them some funds for some reason or the other. The problem lies in the fact that it is somewhat harder to chase after family asking for the amount you lent them if they don’t pay on time. This is why most people advice against lending to family members. But as long as you come to terms with some things it could be fine.

First of all when considering giving a relative of yours a cash loan you must understand is that you will be giving something that could have been used for something else by you. As such you should be completely okay with having to put those plans on hold or delaying them. It is common sense after all, nobody is going to have extra funds lying around to lend to family the instant they need it. You should only lend if you are okay with making such a sacrifice, otherwise you are going to resent that member of your family over time. Monetary problems have been the cause of many family members being estranged with each other.

Next you must consider if you are lending for a good cause, that is to say you need to be sure that what you are lending funds for is not for some ridiculous expenditure that they can completely do without. For an example if they are trying to borrow simply to go on a vacation then it is not something you should condone. If they don’t have enough funds to go on vacation they simply need to live with that fact rather than relying one you to help them out. Next you must consider if you are considering it as a proper lending with an interest involved like a credit company in Singapore, if you are there may be certain laws that would be applicable. You need to check on such matters beforehand. On the other hand if you go for it in the form of a gift there is no hassle.

If you go on the interest path it would be strongly advisable for you to have everything in writing. This way any disagreements that you may have with the person you lent to can be resolved a lot more easily. At the end of the day the most important thing that you must keep in mind is that there is a chance that you may never get the amount you lent returned to you. Sometimes you might only get a certain percentage of it. All in all this risk is always there so unless you are okay with potentially never seeing that amount of funds again you should not lend to family.