Blood Vs. Money: Delicate Dynamics Of Borrowing From Loved Ones in WA
Short On Cash - Long On Dumb,1 in 5 WA, In OR, & CA Played "Loan Shark"
Sharks Swim In Our Families As Well As The Mob
Borrowing From Family And Friends Can Ruin Relationships
BadCredit.org commissioned a survey of 3,000 people to find out how many Americans have loaned money to family or friends at what could be called "unfavorable repayment terms". You know, high interest, kinda like the mob only without the broken kneecaps. Grandma wouldn't do that, would she? Ummm, yup.
Blood is Thicker Water But Is Money Thicker Than Blood? Often It Is
Shakespeare wrote “Neither a borrower nor a lender be” and even in 1603 William knew what he was talking about. The experts say friends don't let friends borrow money because being buddies doesn't always guarantee favorable terms and steep interest rates and tight terms can strain or ruin relationships. At least most of the admitted loan sharks (69%) end up admitting to feeling some level of regret.
West Coasters Willing To Gouge Family & Friends
The survey showed that 21% of people in Washington and California as well as 20% of Oregonians admit to acting like loan sharks! The definition is:
Loan sharks are illegal lenders who are not authorized or regulated. They may charge high interest rates and use threats and intimidation toward anyone who borrows from them.
If You Need Cash, Interest May Be Determined By Where Your Lender Lives
As mentioned, a significant number of residents in Washington and sister west coast states have ripped off relatives but not all siblings are the same! On the low end, the good people of Iowa and Arizona only sharked at about 7% but it's a much tougher crowd in Rhode Island where a whopping 57% helped themselves as they helped their fellow man.
What To Do If you have Borrowed on unreasonable conditions
BadCredit.org has provided tips for people who have both borrowed or loaned money to friends or family members: The experts say these six touch points are topics to talk about if you find yourself in debt to a greedy family member or friend.
- Open Communication
- Assess the Terms
- Consult a Mediator
- Have a Written Agreement
- Seek Legal Advice
- Prioritize Your Well-Being
We'll give the last word to Luigi. Luigi Pirandello won the Nobel Prize in Literature in 1934. He saw life like a loan shark.
Life is little more than a loan shark: It exacts a very high rate of interest for the few pleasures it concedes.
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Gallery Credit: Billy Jenkins
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