Loaning money is always a delicate situation. The last thing you want is to look like an inconsiderate, heartless being but could lending money be unwise? So, how do you tread the tricky terrains of money lending? This online discussion on the subreddit r/adultingph might help. Take notes!

Rule no. 1: Lend money only once

This netizen shared they lend people money once. Plus, they only lend out an amount that they’re willing to lose. If they don’t pay, they just cut them off. No confrontations. No drama.

Rule no. 2: Set a range

According to this user, they only lend up to ₱2,000. That way, they don’t have to be too concerned about being paid back.

Rule no. 3: There should be a collateral

When you lend money, anything can happen. With some form of collateral, you have a safety net if/when things go south.

Rule no. 4: Only lend money to those you can trust

As much as you want to help everyone, be mindful of who you lend your hard-earned money. They should be someone who pays debt without getting asked more than once. Conversely, if you feel someone’s an irresponsible debtor, this is the part where you stick with your gut and say a flat-out “no.”

Rule no. 5: Allocate a pautang budget

It’s quite similar to rule number two but budgeted like a pie. This netizen even has a specific amount for relatives and non-relatives. Smart!

Rule no. 6: The reason why they’re borrowing money should make sense

We’re not here to judge, but anybody who borrows money from you must have a solid reason to do so. You might say no to someone who needs money for a birthday celebration, but say yes to someone who needs it for medical treatments. Whatever it might be, let them plead their case and listen carefully before you lend some cash.

Rule no. 7: Don’t expect to get your money back

Sadly, irresponsible debtors will always exist, and the quicker you accept that, the better. Think of it as a crash course on knowing someone’s character based on their spending habits and integrity.

Rule no. 8: Or better yet, don’t lend money. Ever.

When in doubt, save yourself the stress and don’t borrow or lend money. It’s okay to say no.

Do you have any rules when it comes to lending money? Let us know in the comments!