Creditors have better memories than debtors.
—– Benjamin Franklin, Poor Richard’s Almanac (1758)
Have you ever lent someone some money and then wondered how to get them to pay you back? Maybe you KNEW you shouldn’t lend it, but you felt pressured to help them out. Maybe you dropped a few hints, maybe you even brought it up outright. Maybe you DID ask repeatedly, but you were always hit with, “Times are just so tight right now, can you wait a little while longer?” As if you really had a choice…
Poor credit is the result of a borrower being unfair to a lender.
Few people understand this simple concept and as a result, don’t understand why no one else wants to lend them money.
I’m not so much interested in the return ON my money as I am in the return OF my money.
Dave Ramsey is fond of quoting the Bible verse: “The borrower is slave to the lender.” I agree, but in another way, the lender is a slave as well. The lender is a slave to the worry that the debt won’t be repaid. He’s a slave to sleepless nights wondering if he made the right decision. He’s a slave to wondering if he was too aggressive with the interest rate or if he left money on the table.
I used to work at a bank that fired loan officers who had default rates above a certain percentage and those who had default rates that were too low. Seems the bank expected a certain amount of loan defaults to insure they were being as aggressive as they should be. Lenders worry about those sorts of things.
Several years ago, I lent someone a pretty large sum of money. To this day, I’ve never been repaid. And I can’t help it, but every time I see that person, I remember. I truly don’t think he does. Ben Franklin was right…creditors DO have better memories than debtors.
What about you? Have YOU ever lent money and worried about getting it back?
[tags]money, lender, slave[/tags]