How to Lend Family Money Without Wrecking Your Relationship.

As interest rates rise and banks tighten lending standards, more people are turning to friends and family for loans. Tech tools like Namma, Pigeon, and Zirtue have facilitated over $100 million in loans between loved ones since 2020. These platforms help structure loan agreements, track payments, and adhere to IRS guidelines. While relationship-based loans can be less financially painful for borrowers, financial advisers generally recommend avoiding them due to the inherent risks and potential for strained relationships. [Extracted from the article]