LENDING QUOTES III

quotations about lending

Loans to family and friends tend to be open-ended. The parties don't reach an agreement for a timeline for repayments, and don't include interest on the loan. Lenders don't know when their money will be returned, and borrowers don't know when to repay the loans. This leaves both parties in limbo, and doesn't set any expectations. The uncertainty can lead to stress as the borrower may worry that the lender expects payment and the lender worries about when he or she will be repaid.

CASEY SLIDE

"10 Reasons Why You Should NOT Lend Money to Friends & Family", Money Crashers


Payday lending is often thought of as an exploitive, deceptive industry that traps desperate borrowers in cycles of debt that can last for months. Roughly half of all states ban payday lending outright or have caps on how much payday lenders can charge in interest, which often carry annual rates north of 300 percent. The loans are used widely, partly because many Americans do not have enough savings to cover an emergency. The average borrower takes out eight loans of $375 each per year, spending $520 on interest.

KEN SWEET

"Regulators propose first federal restrictions on payday lending", Providence Journal, June 2, 2016


Better give a shilling than lend and lose half a crown.

ENGLISH PROVERB

Tags: English proverbs