Think twice before lending family or friends money.
More than a third of people who handed out cash or their credit card to help out someone close to them said they were negatively impacted, whether it was never seeing the money again, a damaged credit score, or a harmed relationship, according to a new survey.
Personal finance website Bankrate surveyed more than 2,000 American adults about their money-lending experience and found that 60% of American adults said they have helped out loved ones by lending cash with the expectation that they were going to be repaid. Lending cash was the most common form of assisting others followed by offering loans and lending credit cards.
When people lend cash to someone, 37% of respondents said the money was lost money while 21% said their relationship with the borrower was harmed. For those who lent family or friends with a credit card (17%), 21% said they lost their money. However, 16% said their good deed went punished in terms of their relationship while 12% suffered credit score damage.