6 Responses to “Loans, Gifts, And Boundaries: How Loans And Gifts Create Bondage And Why Boundaries Are Important”

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  1. Pedro Miguel

    Good post

  2. Once a family came to me asking for money. We were friends. I was in the financial hurt locker, and couldn’t help, but it was also a case when I shouldn’t have help, so I didn’t. I explained to the head of the family that there are three places where you should get money, in this order:

    1. a bank
    2. family
    3. life-long friends

    I explained that I wasn’t any of those three, so it was inappropriate for me to be lending or giving them money. Those were, and still are, my boundaries. Amazingly, there was immediate agreement on the other end of the line. I think they realized that they had asked me for money just because they thought I had some, and they were putting our budding friendship at risk. I was helping them out in other ways, and I think they quickly realized that they were overstepping a bit.

    I generally agree with the concept that money should be given away, not loaned. I’ve seen too many family situations where money that had been loaned was never repaid, and it only leads to hard feelings and an awkward situation. Either reject the request, or give them the money with no strings attached.

    Also, remember that once you feed the dog, it will likely come back. You have to be certain that you’re helping someone, not enabling them to be irresponsible.

    Clair

  3. Boundaries are so difficult to establish, but as you pointed out absolutely essential. The problem is that we often think we are helping people when all we are doing is destroying our relationship with them. Thanks for the post.

  4. ak01299

    I got into a situation some years ago where my folks offered to help me buy a home after my divorce, they said I’d be doing them a favor as well, helping them get money out of their estate(which I had no understanding of @the time), I was told I had to sign an agreement (which turned out to be a promissory note saying I owed them the money back+interest) which they would “write off” over 5 years between them as a gift. I signed the note w/the constant reassurance the note would be written off each year, I soon discovered the note is never actually written off it’s merely forgiven, nothing filed, the note goes nowhere. To this day I still struggle to some degree that I signed a note agreeing to pay back money that was never intended to be paid back in the first place, and w/nothing clearly showing their true intention. My Dad did eventually file a gift tax return, but it still bothers me that I signed a note only because I was told it would be clearly written off(boundaries), I thought was walking into a cut and dried situation, I didn’t realize I would have to basically take their word for it(trust).

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  1. [...] Chaffee presents Loans, Gifts, And Boundaries: How Loans And Gifts Create Bondage And Why Boundaries Are Important posted at Enemy of Debt:  A thoughtful post talking about how when we give loans or gifts, it [...]

  2. [...] Chaffee presents Loans, Gifts, And Boundaries: How Loans And Gifts Create Bondage And Why Boundaries Are Important posted at Enemy of [...]



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