Etini
Valued Contributor
Often times, we always hear that we should only lend to people an amount of money that we are able to lose. A lot of people though, out of emotions would go all out getting to the extra mile when lending money to people. Here are two possible negative implications of lending money to people beyond the reach that you can lose.
First of all, when you lend money to people beyond what you can lose, you might end up straining your own budget, especially if the person fails to pay back within the agreed time. That can even lead you to fall into debts yourself trying to meet up with essentials.
Another implication of lending an amount that is higher than what you can lose is that you would have to incur expenses trying to get back your money. Since you can't afford to lose it , you would incur costs in lawsuits or getting cops trying to get back the money.
First of all, when you lend money to people beyond what you can lose, you might end up straining your own budget, especially if the person fails to pay back within the agreed time. That can even lead you to fall into debts yourself trying to meet up with essentials.
Another implication of lending an amount that is higher than what you can lose is that you would have to incur expenses trying to get back your money. Since you can't afford to lose it , you would incur costs in lawsuits or getting cops trying to get back the money.
