We have some homeschooling friends who have a large family and their own business. They've been having some tough times lately. Near the end of April, they called and said their phone was in danger of being shut off and they had no money for food for the weekend. She told me that they'd be "flush with cash" after the weekend, but that they just needed something to tide them over until then. They don't have any family nearby (or close to them emotionally, really), so she asked me.
I had money to pay a bill just sitting in the bank, and since she said they be able to pay it back after the weekend, I loaned it to her. It was $600. Here it is a month later, and I haven't been paid back yet. She's saying deals fell through and they got an eviction notice, and are eating "humble meals of beans and rice."
I thought I was doing them a favor--you know, just helping them make it through a tough weekend. But now I am just another person who they owe money to. I feel taken advantage of. If I'd known that the loan wasn't going to be paid back when they said it would, I wouldn't have loaned it. It wasn't savings--it was for a bill. I would have helped them out in another way--looking up assistance agencies or food pantries in their area, for example.
What do you think about this? Do you loan money to friends?