The saying goes: "A fool and his money are soon parted." But even folks who pride themselves on being financially savvy sometimes have trouble saying 'No' to lending money to family and friends - even when they can't afford to do so.
See also: Tell us about your family loan gone bad.
Money can ruin all kinds of relationships - from friends, to family members to marriages. When lending money goes bad, someone winds up paying the debt. And unfortunately, it's not always the person who borrowed it, but the person who loaned it.
From Jan. 2-27 AARP money expert Lynnette Khalfani-Cox is going to be talking about money and relationships in the Pay Down Your Debt Challenge. In addition to giving some sound advice on how to talk to family about money, Lynnette will be talking about:
- How divorce affects your credit
- What types of loans you should never co-sign
- What debts you need to repay
During the Pay Down Your Debt Challenge, Lynnette will ask the AARP online community to start taking steps to repair their credit, talk about finances with their loved ones and how to recover from past money mistakes. Members of the Pay Down Your Debt group can win weekly prizes as well as a chance to win overall prizes of $2,000, $1,000 and $500 gift cards. (Read our contest rules for details)
Here's to starting the new year debt-free and in control of your money, and your relationships. Get started on the Pay Down Your Debt Challenge.