Peer loans can also affect your relationship in a number of unexpected ways. It could create a dynamic where the borrower feels constantly indebted and the lender feels owed, which creates resentment on both ends. If you can’t pay the money back, you could find yourself avoiding the lender. Likewise, the lender could wind up avoiding the borrower because they feel uncomfortable asking to be paid. It’s all too easy to put these kinds of loans at the bottom of your payment list because you know they’re not going to report you to a credit bureau or charge penalties. It’s essential to maintain open communication and never borrow or lend to someone with whom you have unresolved issues.
Read Related: Loot Patrol: 10 Ways to Have Better Money Habits
