Family and Money Don't Mix
from daveramsey.com on 06 Jul 2009
By Karey in UT
In 2003, I tried to save my brother from failure. He owned a backhoe that was about to be repossessed. My husband and I decided to pay off his tractor with our home equity loan account with the guarantee that he would make the monthly payments.
The original $52,000 loan is now up to $85,000 with cash advances and interest! My brother made a few token payments at first, but that was not enough to even offset the cash we had advanced him. My brother has not talked to me in three years.
The lesson learned is that failure is okay, and if I had allowed him to fail, I would still have a brother and no debt. I will never again loan money to anyone again.
Don't let this happen to you! Learn more about how debt can come between your relationships with loved ones.