Here's a comment that was made on my post Friends Without Money:
I've helped out a few friends
financially when they were in
dire straits, I'm interested to
hear if readers advise against
that or not....or maybe give the old
advice of giving money to a friend
but never lending it for fear of
screwing up a friendship.
Do you lend or borrow money to/from friends? I have always had an extreme aversion to doing so-- it just seems like there is so much potential for ugliness. But I have lent small amounts once or twice. And I suppose I've paid for things for friends in a way that was like giving a gift rather than lending money-- again, this didn't involve huge amounts of money.
If Mortimer, the friend I wrote about, asked me for a loan, I'd give it to him. Oddly enough, I know he once lent money to a friend who didn't pay him back, and that was a couple thousand dollars-- yet another thing that helped lead to his current situation. I could also help Mortimer out by letting him stay with me for a while, which I already told him he could do if it became necessary. It's a trade-off-- I really value having my own space, but I don't love the idea of lending money. Neither is ideal, but Mortimer is a loyal friend whom I trust, and I wouldn't let him down.
What do you think of the issue posed by the comment? Would you lend money to a friend? Give money? Have you ever asked a friend to help you out financially?