Lending money to friends or family doesn鈥檛 always turn out well, and a recent found nearly three in five people who have lent some money or picked up the tab for dinner expecting to get paid back say something bad happened.
Digital payment apps may be adding to it.
鈥淧aying for group events is more common these days with things like Venmo and Cash App. (More people are) going out to a big group meal and expecting people to pay you back with one of those peer-to-peer apps,鈥� said Ted Rossman at CreditCards.com.
While 39% of those surveyed said they鈥檇 probably let a debt of $100 from a close friend of family member go unpaid, there are ways to nudge a friend into paying back without being heavy-handed.
鈥淪ometimes you can actually send an invoice of sorts via a service like Venmo. I think you could also have a conversation, or maybe you want to do it by text. Just say, 鈥楬ey, I need the money for XYZ,鈥� or 鈥極h, maybe it slipped your mind, but I鈥檓 hoping you could pay me back,鈥欌�� Rossman said.
Among those surveyed who鈥檝e lent to a friend or family member, 42% reported losing money, 26% said it harmed a relationship, 10% said it damaged their own credit score, and 9% said it led to a physical altercation.
CreditCards.com said younger adults are the most likely to have suffered at least one negative consequence of lending.
Rossman said there is an easy way to avoid any potential problem altogether.
鈥淕enerally, my advice is don鈥檛 lend money to family and friends, and don鈥檛 mix business and pleasure like that,鈥� he said.
