DrRoberta Dear Dr. Roberta,
My daughter and son-in-law borrowed money from us to start their new business. We told them they could repay us whenever they had the money and they could take their time. But, now they just bought a new car! We drive old cars. Should we ask for our loan back?
Mother, California
Dear Mother,
Sorry, mom. When you loan money and have no strict pay-back schedule this is likely to occur. The borrowers have the right to make any purchases they wish. You, of course, have the right to never again make a loan to them. Don’t let this interfere with your relationship with them; instead use it as a lesson for future financial deals. Anytime you loan money to family members assume it is a gift and not a loan, even when they promise to repay.
– Dr. Roberta
