Before lending money to a loved one, think carefully about what you can afford to lose. If lending could put your own finances at risk, it’s best to say no. Once the money leaves your account, treat it as gone until it comes back.
If you do lend, always keep a written record, even if it’s a simple text or email confirming the amount and repayment plan. For example, “I’ll lend you £200, can you pay £50 a month back starting next payday?” Clarity helps both sides manage expectations and reduces tension.
Breaking repayments into smaller instalments makes it easier to manage. If you decide not to expect repayment, say so clearly to avoid confusion.
There are also ways to help without lending cash, such as paying a bill directly or offering budgeting support. Encourage anyone struggling with debt to contact MoneyHelper, Citizens Advice, or a credit union for free, confidential advice.
Colletta says:
“Kindness and money can work together, but only when there’s honesty, structure and communication.”