Tips to help a friend with financial problem

Do you often find yourself trying to resolve the financial difficulties of your friends and relatives? From personal experience, I know this is a difficult situation. At times, it can seem more difficult than solving our own financial problems.

How to Deal With Friends Who Need Financial Help

1. Should I lend money to my friends?

ask yourself these questions:

Is s/he likely to pay me back or default?
If s/he fails to pay the loan back, how annoyed will I be with that person?
Could this loan damage our relationship ?
Is there another alternative which avoids having a loan from me?
Do they have outstanding debts with other people?

If you do decide to lend money to friends then:

Make a written contract.
Make it clear when it is to be paid back.
Make sure you feel happy with the situation.

2. Offer Advice

3. Don’t Assume anything.

4. Do I help those who don’t want it?

5. Detachment

via pickthebrain

How to Help a Friend Who's in a Financial Mess

What you can do: Take a walk. Get your nails done for 10 bucks.

What you can say: Get her to open up by discussing your own financial challenges.

What to avoid: Unless she's a responsible person and faced with an unexpected short-term problem—say she totaled her car and needs help with the down payment on a new one—don't loan her money.

via oprah