Mixing Money With Friendship

Is it a good idea to loan money to friends?

According to a recent survey that was conducted by Bank of America, loaning even small amounts of cash to friends could end-up spelling disaster for the friendship in the long-run.

In their recent report, the Bank of America sought to analyze the effects that money had on friendships, and they discovered that loaning even small amounts to friends could fuel a lot of stress and future strain in the relationship.

It's being referred to as the first report of its kind, called the Friends Again report, and it details the difficulty that can come along with trying to help a friend when they are in need of a loan.

The report found that roughly 71 percent of Americans have loaned money to their friends and still haven't been repaid for that loan.

For some, it could ultimately contribute to breaking up the friendship indefinitely. Roughly 2 in 5 Americans say that they would end a friendship if that friend didn't pay them back. For many of them, they'd be willing to lose the friend over $500 or less having not been paid back. And many reported that money was one of the main causes of stress in their friendship, with roughly 53 percent having seen a friendship come to an end over a financial dispute.

In relation to the problem, Bank of America has established the Pay Back A Friend Day that is dedicated to promoting the idea that no matter how much time has passed, or how much or little is owed, making payments on those debts to friends can mean more than we know.

For a great deal of people, it can be very awkward for them to try and ask for that money and remind their friend that they still owe them, most people say that they would rather talk to their friends about anything and everything other than money that might be owed to them.

With its BOA mobile app, users can now send, receive, and request funds that are owed to them, even if those they are asking bank at some other institution. And of course this isn't the only method available on the market today for those who are looking to send funds to those they might owe some money to.

Perhaps for those who do loan money to friends, if they start off with the understanding that they might not see those funds again and not give out more than they can afford to lose, then maybe there wouldn't be as much stress placed on the relationship. However, for some they might consider it a cheap lesson (or an expensive one) to learn and find it worth cutting ties with someone who has no intentions of keeping their word in repaying the debt no matter how small it might be.

It might be surprising to some for them to find out that money is such a touchy subject for so many and that it's so uncomfortable for some that they'd rather end a friendship than endure the awkwardness of trying to square up a debt with their friend. Finances have been frequently attributed as being a leading cause of stress in relationships with others.