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<p>A truer thing was never said!!</p>
<p>Only up to the amount I would give them and not expect repayment. It would have to be a very very good friend to get around the $5000 level and it better be a school I like. A $1000 would be more doable.</p>
<p>DH and I lent $400 to a co-worker we considered a friend. We were newly married and didn’t have much to spare. The guy promised he’d pay us back. He never did. Fortunately, he moved to a different state so it spares us the awkwardness of seeing him! At one point, DH did call to ask about the money, but he blew us off. So I’m on the same page as a lot of others - if I can afford it as a gift, I would consider it. Otherwise, no way! My parents have lent a LOT of money to family members, and their feelings are always hurt when they’re not repaid! They know my feelings on the subject, so I just stay quiet now.</p>
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<p>Yes, that was exactly the reason given. My H suggested that he look into the penalty for cashing out the CD early because penalties are often not very high for a CD. H planned to offer paying the penalty. But this “friend” got angry instead, saying that he was not asking for advice. This made me think that the CD was a fabrication. (Also reminds me of that other thread about unasked for advice. Although I don’t see what set this guy off.)</p>
<p>Also, although he is not a “friend”, he is someone whose (paid) services my H uses regularly, and relies on. </p>
<p>I’m getting more and more irritated thinking about this whole thing. I would never hit anyone up for a loan myself if I could help it. And the thought of borrowing money and not paying it back is unthinkable to me. (I will say that I am sure that this guy is good for the money.)</p>
<p>We loaned my brother $5000 towards a down payment on his first house 25 years ago, recorded a 2nd TD and he paid it back on time, no problem.</p>
<p>I have loaned my parents money before for a few weeks at a time when there was a cash flow issue as my parents have loaned me money at times when I was on the road and just needed a deposit to a bank near them. These were more loans of convenience lasting for a week or two than an actual loan with a repayment schedule.</p>
<p>One of my DDs friends asked me to cosign her car purchase, I had to explain that I never cosign anything for any one, even my own kids.</p>
<p>My parents loaned DH & I money for part of the downpayment on our house. They signed a notarized letter to the bank that the money was a gift, not a loan. Regardless, we paid them back on a steady schedule, the loan was fully repaid in a couple of years.</p>
<p>My parents also co-signed loans for my brother. Big mistake. Brother didn’t pay the loans, and the collection agencies called my parents, who ended up paying the money back.</p>
<p>In general, I’d loan money I could afford to lose to a family member (but probably not to my brother, given his past history). I can’t imagine ever asking to borrow money from a FRIEND, so I can’t imagine being asked to lend by a friend either.</p>
<p>Mousegray I think the beggar’s story is fishy, and I’d simply say “no.” Perhaps your DH can find someone else to provide this paid service.</p>
<p>Back in the local black-hole job market that was Seattle in the 70’s, one of my dad’s co-workers asked him for a loan that was based on his musical instruments. Better than a pawn shop - we got to play around on mandolin and banjo and such and he paid no interest.<br>
Just to say - if someone is asking for a loan, what are they putting up?</p>
<p>I agree if the “cashing out a cd” idea made the guy angry, then I am suspect of the cd’s existence. Another idea besides cashing out a cd, is that a person can borrow at the bank that holds the cd, using the cd as collateral. That way, it keeps earning interest. Not as good of an option as stiffing an aquaintance but an option! Ha.</p>
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<p>I would rather offer to PAY the lost interest penalty than lend $5,000. The fact that he didn’t think this was a viable plan makes me believe that any money you lend this guy will be gone for good.</p>
<p>Mouse – please dont do it – trust your instincts. I agree, I dont think the CD exists, and I dont think there is any plan for repayment. </p>
<p>Unless this guy is charging 5K less than market for his services. But I would suggest to your H that he have a back up plan for obtaining these services – I hope they arent unique.</p>
<p>I am more mousy than you – I would suggest that H just say he doesnt have the money (I hope the propsective borrower isnt providing services which he can tell how much cash H and you have) – that is another red flag.</p>
<p>Tell him your money is tied up in a CD. :)</p>
<p>The biggest penalty I can remember for an early terminated CD was about 6 months interest. With the low rates of CDs nowadays, that can’t be much of a penalty.</p>
<p>I’m surprised that this person couldn’t get one of his actual family or friends to help him out here, since repayment is such a done deal…</p>
<p>This actually is starting to smell a lot like a Nigerian scam (“I’ve got a bank account full of money, but I need your money to be able to get to the money” story). </p>
<p>Seriously, I’d rather lose the interest than borrow from an acquaintance (not even a friend).</p>