Would you perfer to borrow money from the bank, friends, neighbors, or relatives if offered with interest?

Question

Seems like such a waste. I hope to someday be rich enough to let my kids borrow from me instead of the bank. I can use the interest to buy them something nice.

Answer 1

Interested third parties with a contractual agreement are always best.

Interested because you want them to have *enough* concern for you to consider your best interest as well as your own.

Third parties both because you want them to honestly calculate your odds of success and you want to avoid conflicts of interest for both them and you. If an independent party runs the numbers and failure looks likely, you want them to STOP you from making a mistake. On the other hand, if the number look great, you want them back you 100% without taking 100% of the profit.

Contractual agreement because legal, written documents can be enforced by a judge so easily that regular folks are likely to *refresh* their memories before they continue a nasty fight in the court system.

*Edit*

Keep in mind that if you are nice and everything works out for the good, you still have laws to follow. In general, if you are *too* nice, the IRS will call it a gift and tax you on it.

Answer 2

Bank. There are never hard feelings between you and a bank. All the rest are personal relationships and generally you don't want to mix them up. That said, we've cheerfully lent money to family several times and had only one bad experience.

Answer 3

I try to not buy stuff I can't afford. If I don't have the money for something, I can't afford it. However, when I really want something I can't afford, I borrow from a credit union or a bank.

Answer 4

Banks. I hate borrowing money from people. It's too personal.

Answer 5

I prefer to borrow from banks.

Family, with the good sense to know that I'll never see it again - but they are family. And if they do pay it back, that's a bonus! (I have borrowed money from my brother once, and I paid him back within four months.)

Friends, but with a simple contract (and a witness) to keep it business like; it also keeps your personal relationship separate from business. Worst case scenario, you can sue your friend with that simple contract. (I have borrowed money from friends and with a simple contract, paid them back on time.)

Neighbors, but with a moderate contract (and a witness); how many of your neighbors are friends? (I have never borrowed money from a neighbor.)

Answer 6

Use the bank. That way, there is no chance of family or friend-ship conflicts.

Answer 7

Never lend money between family members unless you are prepared to let money interfere with your relationship.

Answer 8

Never mix $$ with friends and family.

Answer 9

bank