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8 people who lent money to friends share what happened next

GOBankingRates Logo By Cameron Huddleston of GOBankingRates | Slide 2 of 17: When a childhood friend of Matthew Ross asked to borrow $20,000 last year for a down payment on a house, Ross was skeptical. “I’ve always heard horror stories about how financial loans between friends and family almost always end in disaster,” said Ross, who is the co-owner of sleep and mattress review website The Slumber Yard. So, he proceeded with caution.
“I made sure to set concrete rules and terms before agreeing to loan him the money,” Ross said. He asked his friend to have a portion of each paycheck deposited into his account to ensure that he would get his money back. “I didn’t feel comfortable any other way,” Ross said. “I didn’t want the loan to be structured with a lump sum payment at some future date.”

Matthew Lent a Childhood Friend $20,000

When a childhood friend of Matthew Ross asked to borrow $20,000 last year for a down payment on a house, Ross was skeptical. “I’ve always heard horror stories about how financial loans between friends and family almost always end in disaster,” said Ross, who is the co-owner of sleep and mattress review website The Slumber Yard. So, he proceeded with caution.

“I made sure to set concrete rules and terms before agreeing to loan him the money,” Ross said. He asked his friend to have a portion of each paycheck deposited into his account to ensure that he would get his money back. “I didn’t feel comfortable any other way,” Ross said. “I didn’t want the loan to be structured with a lump sum payment at some future date.”

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