Lending money to a significant other, close friend or family member is an excellent way to hang a black cloud over your relationship, but sometimes it’s the only financial maneuver that makes sense. Be smart by treating the transaction just as formally as you would one with a financial institution.

Girls Just Wanna Have Funds delivers recommendations for arranging a personal loan with someone closed to you:

* Be willing to say “no” for no good reason. Just because you have the money doesn’t mean you’re compelled to loan it out. Only lend the money if it’s something you want to do, and don’t let yourself be manipulated.

* Don’t lend more than you can part with. If someone needs to come to you for money, it’s probably because banks don’t trust the person enough to front them the money. If you take the risk, be prepared to lose the bet and don’t lend money you’re counting on having at the ready.

* Make a contract. Include the date of the loan, when it’s expected to be paid off, the number and dollar amount of payments, late fees, and have both parties sign off. If the person you’re thinking about lending to bristles at the idea of a contract, don’t proceed with the loan.

Advice: Should You Lend Money To A Significant Other? [Girls Just Wanna Have Funds]

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