Today, we will continue our video series about lending money to family and friends.
The next point I want to cover is to Do your due diligence: The lender should ask the potential borrower for a full credit report to understand the scope of their financial situation. Family members with a spending problem might not be aware of everything they owe or might try to hide their liabilities to get a temporary bailout. Having the full financial picture will help you understand what you are getting into and assist you in developing a strategy to get the borrower out of their financial dilemma.