When Friends Ask For Financial Help

Despite the difficulties that every American faces when it comes to financial matters, such as debts, credit issues, loan payments, interest rates, economic concerns, and many more issues, these things are generally the sort of problems that become transparent and defeated when you apply a little common sense and a good deal of hard work. No matter how bad it may get, you can always count on your will and your intellect to get you through the harshest of times.

However, one particular issue that has existed for as long as money has been around that still has no easy answer but continues to pop up on everybody is something alien to the hard logic and objectivity that govern financial matters, yet is fundamentally tied to your personal money. It’s the kind of question that can’t readily be solved by even the shrewdest accountant or the most power calculator. In fact, this sort of dilemma strikes suddenly without warning, and comes with the sort of concerns that can only be addressed by the same people who may pose it in the first place. It has many ways of being brought up, but essentially comes in the form of “I’m in need of some money — can you help?”

Of course, the thing that makes this question so confounding is that, when it comes to good friends and family members, you do want to help. The real question is, however: Should you help? And if you do, then in what way and to what extent?

With so many people in America currently struggling to deal with the slumping economy, lenders tightening the standards that govern their loans, and jobs in certain industries drying up, this is a question that is being posed more and more often these days, and is becoming something of a concern in its own right. There are more people approaching their friends and families for cash then there ever was before, and the issues are generally very wide.

When considering helping a friend or family member, try and approach the fundamentals rather than what the person tells you when it comes to his or her situation. They may say that they’re losing their home, or that they need money to pay off an outstanding debt that is haunting them on their credit. These situations may seem like desperate ones, but what you should consider is whether or not these situations are chronic.

Some people, even with all the assistance of their friends and family, continue to miss things like mortgage payments or find themselves quickly in debt again. With those circumstances, the problem really isn’t the debt but the mentality that allows the person to fall into it. Ask for frank honesty and don’t be afraid to probe when it comes to sensitive issues. If you call somehow out on being debt-prone, then it not only brings the real problem to light but it also helps you deal with the person in a way that makes your actions more positive.

Of course, you may just want to consider giving the money as a gift, but think about whether or not the person is prone to debt in the first place. Something to consider is lending money to help the person develop a sense of responsibility and to get back what you invest into that individual. Think about utilizing a third party when lending money. If you have a statement saying that you loaned a person money notarized or brought to an agency that records these sort of transactions, then you can get a better guarantee that you’ll be paid back at some point or on time.

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