If family members are struggling financially, should you lend them money?
When a friend or a family member asks to borrow money, your first inclination may be to help out. But many people have learned the hard way that friends, family and finances often make a poor mix.
Here's one woman's sad account. Before they got married, her husband's mother died unexpectedly, leaving him a bit of money. About two years later, his oldest brother calls up and asks to borrow 30K to help him and his girlfriend buy a new house.
Husband says OK and withdraws the money, including penalties, from one of the accounts his mom left.
And then things head downhill from there.
Younger brother forgot to report the withdrawal to the tax department, and gets hit with a huge tax bill for about $16,000.
Two years later, after selling their car to pay for their wedding, older brother is finally starting to pay the couple back. But it's only about $200 a month, off and on.
Would they do it again? No way, says long-suffering new wife. What about you?
Under what circumstances would you lend family members a significant amount of money? If you've already done so, how are things working out?
By Gordon Powers, MSN Money