Vent about friends borrowing money

Live and learn.

At some point you may learn to not give a loan/money to friends? Don't lend money to friends expecting repayment. If someone asks for money and you borrow it to them, consider it a gift to them. If you get paid back, great....but don't expect it and then you won't be disappointed, regardless of what is said.

I don't make those mistakes anymore. We don't loan money to friends. Again, money can ruin friendships. It's funny how my good friends have NEVER asked to borrow money.

Wisdom with age.
 
Doc thanks! you've made me feel so much better about this. I hate the fact that he got himself into another mess! I'm frustrated and angry with him, but I'm going to try not to show it!

I offered to give him money to pay for his medication. So far he has declined my offer. I guess when he calls me again, I'll see how bad off he is!:(
 
Sorry this turned out to be so long...

I lost a lifelong friend (25+ year friendship) due to money/business trouble. I had a house that I could not sell at the moment (it was in a trust) but I wanted to move in with my boyfriend now hubby. We wanted to get the kids into a good neighborhood for school etc. (35 miles away) which meant the rent was high. My house was in the Hollywood Hills and similiar houses were renting for $3000+ a month. (Im not exagerating). My house needed some work and she was willing to move in with her sister and do the work. Painting etc. She could only afford $1100 per month but I knew she would take good care of the place, and she wasmy friend.

SO I moved out and she moved in. 1st month she refused to pay because she said I had not moved all of my stuff out. I had left stuff in the garage and also a stove around back. Not a big deal really. in my opinion but in order not to start a fight we let it go.

I moved all the stuff and she started paying. After 2 years I was able to sell the house and we decided that would be the best because we could move all 6 of us out of the tiny 3 bedroom apt we were staying in.

I told her we were going to sell and how much we were asking and she freaked. She said I promised she could buy the house when we free to do so but there was no way she could afford what we were asking ($550,000... a very good price for the neighborhood).

She said she had put SO much money into the house thinking she would be able to buy it, but she wanted us to just use her past rent as a down payment and then let us float her until she paid off the $250,000 she thought was reasonable.

I tried to explain to her that I needed the money to get my kids out of our apt and that I never told her to put money into the house, that it was her decision. (She really didnt do THAT much to it).

She was so mad at me that she didnt pay me for the last 2 months she lived there. I called her trying to explain that I HAD to have the money because that was how I paying my part of the rent and I had no other income at the time. I was helping DH run his business and he was supporting ALL of us with it(me and 4 kids that werent his!). She absolutely refused and said I was selfish and dishonest.

I have known her since the 3rd grade. I considered her one of my very best friends. I was so sad and upset. I do believe a lot of it was that her sister was egging her on, and I also think she was jealous that I had a relationship and kids. (She has neither and has a very hard time with men..... she is a child therapist.. you figure she would see what she was doing!) She refused to talk to me after she moved out.

About a year later I wrote her via email and asked if she was still upset and her response: one line.....What do YOU think?

A year ago at Christmas I dropped a package off at her moms house of some chocolate (her favorite) and a card asking if we could just forget the past because I missed her and her friendship. She never contacted me and that was that. I tried.

How sad.... :(
 
:hug: some people just don't get it. Sorry, but there are better people out there who would love to have a friend like you.

I might add.....insult to injury here.....for my DH, the money he loaned his "friend" he had to finance his car (which was paid off) to loan him the money. This guy was to pay interest and all. We finally got the money, but NO interest or fees for the loan. At that point, we were happy with just getting the money.
 

"No one can take advantage of you without your permission."

If you make a "loan" to a friend without following through on some simple steps, you are simply giving permission to the person to take advantage of you.

Take the time to document everything in writing: loan amount, interest rate, repayment schedule, total amount due, penalties, etc.

Sure, it's easier and faster to just "agree" to everything verbally... but take some time to watch a few cases on People's Court or Judge Judy or Moral Court, etc. I refer to the endless cases where someone made a loan to a "friend" and the friend didn't pay it back, so now they are in court. The "friend" said it was a gift. No paperwork, no signatures, no loan.

If you repeat the same mistakes, then you've really learned nothing from the experience.

"Fool me once, shame on you. Fool me twice, shame on me."
 
Originally posted by Melora
SO I moved out and she moved in. 1st month she refused to pay because she said I had not moved all of my stuff out. I had left stuff in the garage and also a stove around back. Not a big deal really. in my opinion but in order not to start a fight we let it go.

What a horrible story! I guess in retrospect, the above incident was the big "RED FLAG" that we tend to ignore for one reason or another. Reading that, it seems obvious that she should have been kicked out right then and there. I know it's not so clear when it's someone you thought was a friend. Some people are truly only in it for themselves.
 
Originally posted by Eeyore1954
[BSure, it's easier and faster to just "agree" to everything verbally... but take some time to watch a few cases on People's Court or Judge Judy or Moral Court, etc. I refer to the endless cases where someone made a loan to a "friend" and the friend didn't pay it back, so now they are in court. The "friend" said it was a gift. No paperwork, no signatures, no loan.
[/B]

I hate those! It seems like every case on those shows has the same theme. (Can you tell I don't have cable?) Those people make me sick.

Mine's not a case of her claiming that she doesn't owe me, she's just putting me off. If she denied it, I think I'd have to stop talking to her. I always put "loan" in the memo part of the check, but I've never loaned more than $1000 (and that was to a boyfriend -- the most unlikely loan to get back, if you watch those court shows).
 
I had a boyfriend who always used to ask to borrow money. That sent up a red flag, when we broke up he owed me a couple hundred. I later found out he owed my brother and one of my friends money too. Other than that I've never asked for a loan or been asked for money from any of my family or friends. Except for the occasional time I forget my lunch money at work:) -- I always write myself a note and pay it back the next day.
 
I live in a big beauitful home. My DH and I have worked our butts off to get where we are. We played the house game for years, buying and selling intill we could buy our dream home with lots of money down from all of the past house sales. ( we have owned 9 homes)

Money is tight yes, we have 3 kids still at home and I just started working part time to add a little bit each month to our budjet.

Well we have friends who have NOTHING, they dont pay their bills on time are always having cell phones, cable and house phones cut shut off, hubby works with my Dh and takes so much time off work that my DH can not believe he is still employed. They take 2 week Disney vacations on credit cards. She was telling me one day about having to come use my computer to check her bank balances because her house phone was shut off and in the same breath asked if I wanted to do lunch !!!!!

Well for 2 years now they are always saying that we are rich and we can afford anything we want. I always ask what planet she is on because I have no extra money. " Well you have savings and retirement ...spend it " I have savings because WHAT IF and retirement for just that !!!

There new thing now is asking us to buy them a house ( they were rejected by several banks and mortage companys) because we have owned so many we should help them out. At 1st I thought it was a joke but now the hubby is starting to get mad at my Dh because we wont do it.

3 years ago my brother was in a sticky mess and gave me $25,000 to buy him a house and we did. It was no money from my pocket and my brother paid in full each month the mortage intill he was able to put the house in his name. Ok my brother I did it for. So now they are starting to throw that in our faces.

No I will never ever buy them a house and have told them that. Our friendship is still going but on shaky ground.
 
Originally posted by nealymouse

Well for 2 years now they are always saying that we are rich and we can afford anything we want. I always ask what planet she is on because I have no extra money. " Well you have savings and retirement ...spend it " I have savings because WHAT IF and retirement for just that !!!

Well that pretty much sums it up. You have what you have because you were sensible with your money. If you switched assets with these people right now, you'd probably be back in the current status within a decade. (Did that make sense?)

Anyone wonder why they don't teach simple money management in high school?

I'm so proud of myself. My money management "skills" (aka "being cheap") are rubbing off on one of my assistants now that he has a kid on the way. I can't believe what these kids pay for stuff like cell phones, cable, car payments, etc.!
 
As a child my parents DRILLED money into our heads. Not money to spend but money to save for " What ifs" My mother was also the one who told me to never hang the home sweet home sign intill I had the house of my dreams and a mortage to match what my 1st mortage was. Ok the mortage end didnt even out but I can tell you I have friends who have starter homes with a highter mortage then we have and we pretty much bought at the same times.

But on the flip side I have 14 yr old DD who for the life of herself cant save a dime !!! It upsets me so much but have learned that I am not going to win this battle. We have told her that we will match what she saves for her 1st car but at the rate she will be 30 !!!
 












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