Personal finance guru Dave Ramsey has some robust love to provide well-intentioned individuals who lend cash to associates and family.
That message is straightforward – don’t do it.
DON’T MISS: People stress over one large monetary transfer.
“Hundreds of times, I’ve seen relationships strained and sometimes destroyed from loaning money,” Ramsey mentioned on his September 2 radio broadcast. “We all have, but we continue to believe the myth that a loan to a loved one is a blessing. It isn’t — it’s a curse. Don’t put that burden on any relationship you care about.”
Ramsey spoke up about lending cash to private connections in response to a caller questioning if accepting $100,000 from family to purchase a brand new dwelling was a good suggestion.
“You aren’t going to like my answer,” Ramsey mentioned. “I would recommend you don’t take out a loan from your in-laws. The borrower is the slave to the lender, and when you owe your father-in-law money, Thanksgiving dinner tastes different.”
Borrowing cash from a relative is an enormous cause why relations don’t communicate to one another, Ramsey famous.
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“(The relatives) are probably kind and not controlling people,” he added. “But that will all change the first time you miss a payment. And suddenly, where you went on vacation and the brand of your kids’ clothes matters.”
“They’re looking at every decision you make on money in terms of whether they get paid or not.”
Ramsey mentioned that private relationships after a mortgage from a relative or a detailed good friend, will change.
“You’re going to feel it,” he mentioned. And for that cause, Ramsey mentioned “I will not loan money to my children — ever.”
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Source: www.thestreet.com”