Careful How You Loan Money

By moneygodmother

It’s always tough to say no to family or good friends, especially when it comes to money.

But did you know that loans you make to family or friends are more likely to end up not being repaid?  About 14% of friends and family default on such loans. This compares to about a 3% default rate on bank loans made to consumers, according to the April issue of Journal of Financial Planning.