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Why You Should NEVER Borrow Money From Relatives

The Ramsey Show Highlights 81 views

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If I was lending money I want collateral for the sane amount I’m lending you
Comment from : @samuels4777

Idk I might loan money to my kids Obviously I’d have to see how they manage their finances, and I’d have to have enough that i wouldnt miss the money If it looks dubious, I’d give them annual allowed gifts Other relatives? Maybe if small amounts and I wouldn’t expect it back But if no payback, that’s a one and done for them No hard feelings They just can’t handle money
Comment from : @ronica2623

My mom offered to be my "bank" for a home loan and she said she would only charge me the minimum interest (AFY) that the IRS mandates in order to not consider the loan a gift (currently 372) But I would rather pay the prevailing bank interest rate (currently 648) rather than having my mom be my "master"
Comment from : @MrRibby88

Loaning is a business You should only do businesses with family if they are mature in matters of business 🧑‍💼brbrYou should have the same protection protocols in place like a business dealing as well
Comment from : @adonaiel-rohi2460

Never loan money to emotionally immature & financially insecure peoplebrbrThese people are not stable, impulsive & not likely to take care of their responsibilities
Comment from : @adonaiel-rohi2460

I loaned a friend several DVD sets close to 10 years ago now I rarely see her anymore Maybe once a year she'll say "oh, I still need to get those DVDs back to you I think they're in my trunk" I just raise an eyebrow I feel petty, but also, returning a borrowed item is just basic respect in a friendship
Comment from : @CG-MP

😊😊😊😊🎉
Comment from : @turtleanton6539

That's the best advice NO cash for or from family
Comment from : @phyllis9750

You can just hear it that the guy won't listen to Dave and ultimately he will be sorry
Comment from : @mariorusinov6253

I lent my brother 17 thousand dollars back in 1996 for his business, he never paid me back He also borrowed money from his friends and probably didn’t pay them either ,we have had a few fights about it over the last 28 years He’s a deadbeat living in Mexico now I was in the hospital for 6 weeks about ten years ago with a broken back, pelvis, hip and shattered femur, he came and saw me for about twenty minutes and split to Mexico, haven’t seen him since, I sure could have used that money when I was off work for that two years Oh well, lesson learned 😊
Comment from : @Whateva67

One of the golden rules of finance, never lend to anyone without a contract, and never lend to family
Comment from : @Bcp69

I never borrowed from family
Comment from : @Poppy-yx8js

Purchased a car for someone and got burned! They got into an accident 2 months after getting it , lied about signing and receiving info from the other person’s insurance , therefore forcing me (as the car owner bc I kept it in my name bc her insurance was high AF) to accept not only a total loss but also only getting around 4k so yea that’s the only payments I received EVER she stopped making payments & I cut her off
Comment from : @susieblanco2722

I'll never understand the logic of borrowing money from family or friends NEVER
Comment from : @dyates6380

There is a lot of information out there why we shouldn't lend money to relatives and friends, but less on why we shouldn't borrow money from relatives and friends The gentlemen here are on point A note to those contemplating borrowing money from relatives and friends: doing so is putting the relationship at risk Even asking to borrow money will change the relationship The moment the request is made respect is already lost As the first gentleman suggested, the moment the first payment is missed there is a loss of trust Now the lender may not say it, but the lender's resentment will build as stories continue as to why payments are not being made It is just too easy to take the agreement as casual because of the relationship and assume that the lender doesn't care when the payments are made I know this from my own experience as a lender who has been stiffed The question the would-be borrower should ask is if the loan is worth losing the relationship over? The same question applies to a would-be lender In my opinion it's just not worth losing the relationship over, so I don't lend or borrow
Comment from : @thedeal9526

I agree with Dave on all but the consigner You shouldn't but it's not practical in today's day and age For my first apartment they wouldn't rent to me without a cosigner I had minimal rental experience (other than student housing) It's easier said than done
Comment from : @awsomo53

Robert, you like many Canadians, are infantile little twerps
Comment from : @itsdavidlo

Dont ask to borrow and dont "lend" any $ to anyone! Unless to dont want to see the person you lent the $ to because they will "disappear" when payment time comes
Comment from : @jennifer3551

I had lend, my now ex gf, $1050 cash to have to fix her family’s living room floor and was told they each were gonna give me back at least $300 each but I never got it back It’s been 3 years They told me last week they will pay me back when they sale the home hopefully early next year
Comment from : @ivanvargas2425

Never loan more than you would give That way if they don't pay it back it was always a gift! And if they ask for more money, you can remind them of the earlier unpaid loan
Comment from : @buffymcmuffin5361

Money exchanged with friends and loved ones turns to master n slave I see that and I have learned to avoid
Comment from : @RightPhalanges

Loaned money from a family member can cause headaches with the mortgage company too A gift is a gift A loan has strings attached that are required before the bank will accept as "your" available cash
Comment from : @michaelday6987

Always lend what you can afford to lose
Comment from : @alphadiallo1655

She is already in Residency (medical)
Comment from : @michellewinkler3985

They bought the flat and she is finishing her PHD :)
Comment from : @michellewinkler3985

Our son and his wife needed help with a down payment on a flat in the UK (we live in the US) They asked to "borrow" money We discussed the situation and decided that we would "Give" We don't expect repayment We also didn't "give them" exactly the amount they wanted, we gave them what we felt we could give financially There will never be any bad feelings because everyone knows up front what happened If you don't have the money to give, just don't give it We love them deeply and would still give him the shirts off our backs! Also, you can't take it all with you! This made their lives so much better!
Comment from : @michellewinkler3985

"The borrower is slave to the lender'
Comment from : @BarrettUrmyTarot

Unfortunately times have changed I believe that many younger people today would not feel badly in any way asking for or being given loans, etc And would feel indignant about having to pay it off I've learned this the hard way with one of my adult kids
Comment from : @jennifer3551

My grandfather lost his farm because he co signed a loan for his brother' My brother stills owes me money, he thought he was intitled for me to lend him money because he was my brother You can always tell when somebody is on drugs, when they give you some long elaberate BS story of why they need money
Comment from : @brianmcintyre8563

100 My mom leant my sister money for so many things and when mom finally said no, my sister stopped speaking to her Oh and my sister never paid a penny of it back
Comment from : @May-qb3vx

If people don’t think you have any money, they won’t ask either LOL
Comment from : @mike7933

"Lookin to buy my first hOuuuSe!" - Canadians
Comment from : @trebmaster

My uncle lent his cousin some money many years ago Come to find out she may be on drugs Never got it paid back & he will still bring it up on occasion Last week she asked my dad for $
Comment from : @Allaiya

Our 30something daughter needed a cash influxshe promised to pay us backwe said, no, this is a gift not a loan $8,000 is not worth the heartache We also said, don't ask again
Comment from : @billjosh12345

I can count on 1-hand the # of people I’d lend money to And I’m excluding members of my immediate family …brThanksbrJim Eagle
Comment from : @jimeagle5509

when do you estate planning, be very careful who you include or exclude in your will - if you don't want to leave relatives anything, let them know early on, the fights I've seen over estates is horrible
Comment from : @michaelsix9684

don't loan money to friends either, if you loan money to friends, you generally lose both, cost me over 10K to learn this
Comment from : @michaelsix9684

One of the reasons I feel hesitant to take money from relatives, even if it was a gift
Comment from : @Love2Banime

Dave is so right You NEVER borrow from or lend money to relatives NEVER!! There can be so many problems You/they can give, but don't lend
Comment from : @jimroscovius

To borrow 100,000 from family is ridiculous 😮
Comment from : @14elvira14

I loaned a friend money about $150 20 years later she forgot about it, but I didn’t
Comment from : @LillyAnnHouston

Never ask a relative for money It’s an invite for many issues down the road All family meals will taste bad
Comment from : @amydoran9987

👏🏽👏🏽👏🏽
Comment from : @mandytoofinep8428

Absolutely right Wish I could turn the clock back on certain instances in the past and approach from a different angle, I'm sure we all do Youngsters listen to this, please
Comment from : @andipeters743

I have a good friend I give money to she's 80 ish, and I consider it a donation
Comment from : @michaeltewes7833

Additionally there is a good chance that you will hear that that loaned, gave you money for a life depending in the person
Comment from : @mikeshaw4610

Even if I was destitute on the street ,I would not accept a loan from family members Even when repaid they think they own you for life and never let you forget the “kindness” A view from the other side of of family loans
Comment from : @judygilbert9628

Idk… hearing Dave talking about lender and lendee in terms of Master and Slave sounds quite disgusting… but just my opinionbrOtherwise, good info
Comment from : @mcgritty8842

So banks are not evil 😂
Comment from : @t3morga

I lent money to my brothers to help buy their houses It worked out well The first time, my brother had almost enough money to buy a condo outright but no credit history, and my sister and I lent him enough so that he didn't have to fight with the bank to get a mortgage We basically worked out a private mortgage with an interest rate lower than what the bank would charge, but higher than what we'd earn with the money sitting in a savings account My other brother still needed a bank mortgage, but lending him money helped us both financially I don't think his wife was as comfortable with it, but we still have a good relationship I never had any worries about being paid back
Comment from : @bethanyb4478

Yes, don't borrow money from family!! You'll regret it
Comment from : @PhilipMarcYT

My whole family has a not good history with borrowing money from each other
Comment from : @Zero_energy48

Seriously, borrower slaved to the lender is such a retarded bullshitbrThe lender slaved to the borrowerbrOnce they dont pay u back u are fucked, good luck
Comment from : @johndone8045

Blessings from Taiwan
Comment from : @teacherdavid--eatplaylearn5013

I would just take the mortgage I don’t want family drama/legal problems over the money in the future if something happens to any of you guyshe will definitely get approve for it with $150k saved
Comment from : @queenkristal8395

150k saved up is amazing! Go to the bank and take out anothet 150 You just put 50 down on your house
Comment from : @kara2162

recently sold a property and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point
Comment from : @Blitcliffe

i lost friends because of money issues (i got sick and i thought better to ask for my money back but lost friends so as my money 😮
Comment from : @lheenlejardesazon7890

I totally agree If you need to borrow, you go to a BANK
Comment from : @mathisnotforthefaintofheart

I agreed to guarantee the first semester of college for my stepdaughter She swore she would pay it off 11yrs later she is married to a doctor and has only paid 15 Lesson learned
Comment from : @patrickkennedy2494

My husband and I made the mistake of borrowing money from his parents and found our spending habits were continually scrutinized until we finally paid them back We made the decision never to borrow money from family again! (Nor lend money, either)
Comment from : @cheryla9951

Don't loan anyone money ever Ramsey is correct that the lender is going to scrutinize the borrower's spending habits (vacation, clothes, etc) I scrutinize others' spending habits even when they don't owe me money! (eg, How could they send their kids to private school, pay for travel sports, AND afford that new $60,000 car when they make less than me?!!)
Comment from : @MrMds414

Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you” – Proverbs 22:26-27
Comment from : @EricSmyth4Christ

As a Super-Christian, I love loaning money (at 0 interest), and not being paid back brbrWhen I die, I want people to say “Hey, I owed him money!”
Comment from : @EricSmyth4Christ

Never take from family NEVER
Comment from : @johncameron4194

Completely agreemoney and family DO NOT mix I think the discomfort can also work both ways It can be quite uncomfortable for a loanER when the borrower doesn't seem the least concerned with paying the loan back
Comment from : @odessa870

On point We never loan to anyone Learned the hard way a long time ago
Comment from : @katherinehilloppel2756

I got burned $80k cosigning for distant family (in laws) Stupid me Will warn my kids never to do something that dumb If in laws are in trouble they can have a room in my house for some time But I'm never signing anything for anyone again Can't afford it? Don't buy it
Comment from : @K4R3N

Sell both cars!!!brNo matter what!!
Comment from : @summerforever6736

Don't go to stupid Thanksgiving!!
Comment from : @summerforever6736

Off topic of the video, but I’m currently enrolled in school My student loan is 13k and I graduate at the end of November My starting salary will be around 35-40 dollars/hr with around 20 hours of OT per week at double pay I’ll be making 6 figures (hopefully) should I pay off my student loan in my first year of working? And I plan on renting an apartment for a few years to save up for a cheap duplex and renting out the other half at a little higher than the monthly mortgage payment Once it’s paid off, I want to rent out the other half and buy a house around 300k By this time I’ll be well above $100,000/year, as my salary will increase each year throughout my apprenticeship I want to save up an emergency fund and put most of my checks into the S&P500 Does this sound like a good plan?
Comment from : @AA-yl9so

The concept is strange but true
Comment from : @ronrafalzik3299

Paid the STUPID TAX with this one!!! "Lent" my deadbeat sister money and never got it back Once I couldn't give anymore she publicly defamed me and blocked me
Comment from : @AimeePoppinBabies

Excellent advice
Comment from : @fullstack5461

They are right, do not borrow money from a relative, I mean if you can avoid it
Comment from : @mossgeorge2001

Oh man, I understand now, we have borrowed money from my parents multiple times and I’m totally comfortable with it, but my wife, not so much When we were paying back my wife’s father with a business transaction I wanted to pay it quick but my wife was relaxed about it Those feelings Dave spoke about are so real
Comment from : @DELTAWC909

Many years ago I borrowed $200 from my parents in order to pay car insurance I told them I would pay them back in 2 weeks (which I did) and I never heard the end of it My older brother and sister 'borrowed' thousands from them, never paid them back and I got the brunt of their misgivings I will NEVER lend money or co-sign for anything ever!
Comment from : @PSB-900

Never ever borrow money from or lend money to family and friends if you want to keep a good relationship with them, Lending and borrowing money definitely change relationships
Comment from : @mahamehanna9826