4 ms·

Unless you want a profit on your loans to friends and family you don't need do the same calculation as the banks. Also, you got way better character knowledge t

Unless you want a profit on your loans to friends and family you don't need do the same calculation as the banks. Also, you got way better character knowledge than they do. You know which friends are low and high risk and will do something stupid with a loan. Some are rock solid and some will use the money for 200USD cab rides between bars when they can't pay the gas bill.

bawolff 3y ago
> Also, you got way better character knowledge than they do. You know which friends are low and high risk and will do something stupid with a loan. Maybe, but you are also blinded by your emotional attachment. I suspect for most people that would far outweigh any benefit from knowing your friend's character. As far as profiting goes - well is it a gift or is it a loan? Even if you get the principle back exactly you are still losing money due to the time value of money. Maybe your ok with that. Maybe you are ok with not getting it back at all. In which case it is more a gift then a loan. Which is fine as long as you are honest with yourself about your expectations.
mcny 3y ago
I'll share an example of a friend who can't open a bank account because their father apparently wrote too many bad checks by opening accounts on see friend's name while my friend was still a minor. This is a person who works as a teacher at a public school so has a regular job and is a US citizen by birth. The only crime if you can call it that is they don't want to send their father back to jail just so they can have a bank account.
- bawolff 3y ago
  This is all very sad, but that is what happens if you take the fall for someone else's crime. If taking the fall for someone else's crimes was consequence free, then everyone would do it. If the same thing happened to you, you probably would also blame your friend as well. E.g. if your friend's father pretended to be your friend, borrowed money, and then when you asked about it, the friend claimed that he himself did it because he didn't want you mad at the father, you would probably blame the friend not the father.

bawolff 3y ago

> Also, you got way better character knowledge than they do. You know which friends are low and high risk and will do something stupid with a loan. Maybe, but you are also blinded by your emotional attachment. I suspect for most people that would far outweigh any benefit from knowing your friend's character. As far as profiting goes - well is it a gift or is it a loan? Even if you get the principle back exactly you are still losing money due to the time value of money. Maybe your ok with that. Maybe you are ok with not getting it back at all. In which case it is more a gift then a loan. Which is fine as long as you are honest with yourself about your expectations.

mcny 3y ago

I'll share an example of a friend who can't open a bank account because their father apparently wrote too many bad checks by opening accounts on see friend's name while my friend was still a minor. This is a person who works as a teacher at a public school so has a regular job and is a US citizen by birth. The only crime if you can call it that is they don't want to send their father back to jail just so they can have a bank account.

bawolff 3y ago
This is all very sad, but that is what happens if you take the fall for someone else's crime. If taking the fall for someone else's crimes was consequence free, then everyone would do it. If the same thing happened to you, you probably would also blame your friend as well. E.g. if your friend's father pretended to be your friend, borrowed money, and then when you asked about it, the friend claimed that he himself did it because he didn't want you mad at the father, you would probably blame the friend not the father.