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Below, two money experts share the dos and donts oflending money to loved ones.
Aseevs friend used the money to fix the car but needed time to recover financially.
I didnt want to pressure him, so I never reminded him about the debt, Aseev said.
Occasionally, he would remember on his own and assure me he was working on it.
A few years passed with sporadic mentions, and one day, he finally returned the money.
He was deeply apologetic for taking so long and for forgetting about it multiple times.
He repaid the debt in his countrys currency, based on the converted amount he remembered receiving years ago.
Aseev said he wasnt upset with his friend, though.
I knew what I was getting into, and I genuinely wanted to help him at the time.
But there are lessons others can learn from this when loaning money to friends or family.
He added that if he could turn back time, he would approach such situations with much clearer boundaries.
Heres some expert advice on how to handle those situations.
He explained, Establishing clear terms can prevent misunderstandings and maintain trust.
Set Clear Repayment Terms
Always negotiate a firm repayment date, said Aseev.
Agreeing on aspecific time framehelps address this issue.
He also advised specifying the currency for repayment.
This avoids any confusion or discrepancies caused byfluctuating exchange rates.
And finally, Aseev recommended communicating openly.
Dont hesitate to remind the borrower about the loan if repayment deadlines pass.
Friendly, respectful reminders can help avoid long delays and misunderstandings.
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