Can Borrowing Money be Dangerous?

Many are trying to hold their own during this recession and recovery.

"Unless it's a real emergency, lending money enforces dependency, rather than someone going out there and trying to do it on their own," Gurney said. "It reinforces someone feeling like a child again, that they have to come back to their family. That's not a good place to be in."

Says psychologist Kathleen Gurney. Amid these hard times in our economy, many may be tempted to lend money to family members in need. Initially, this would seem simply a selfless act, but there can be consequences for even the most generous lender.
Ruth Mantrell, in her article for marketwatch.com, points out that borrowing money can cause problems for some one too. If one borrows money, the lender many times will become too involved in the borrower's life, as a result of wanting to know what the money is being spent on. This would be quite a nuisance, and fosters dependence on the part of the borrower. Some may even lend out money just so they can have a sense of control over others, which isn't healthy.

"The relationship is the most important thing to guard here. Have an agreement; it can be a handwritten agreement. Help the family member come up with a game plan, how they are going to pay you back," Gurney said.

What is important is that all consequences are considered before borrowing or lending money. There should be a written agreement, and a plan should be set up on how the borrower will repay the lender. This way everything is secure.