THE topic of money can often be taboo…

But when it comes to lending – or giving – money to family or friends, the potential for difficult social situations quickly escalates.

Consequently, it’s worth considering the repercussions of your actions fully and frankly.

For example, what would you do if you were requested to lend someone money by a friend or loved one - and you subsequently declined?

Or what would you do if you did grudgingly give someone money, and they failed to repay you?

In my opinion, describing these situations as embarrassing is inaccurate.

These kinds of circumstances can be extremely uncomfortable and anxiety-inducing since you don't want to upset or offend the other person or run the risk of creating issues further down the road.

Maybe for that reason, some of us are drawing some very distinct red lines.

In a survey conducted by the payment app VibePay, eight per cent of UK respondents said they would never give money to a friend or family member.

Furthermore, a large number of people are unsure of themselves; 13% of respondents indicate they might lend money to someone if asked, but they are unsure if they would.

The fact that so many people are reluctant to lend money is understandable given that it has previously resulted in major issues for them.

Almost one-third of those surveyed acknowledged having had a financial disagreement with a friend or loved one in the past, it makes natural sense that many of them don't want to encounter a similar circumstance in the future.

The VibePay survey also examined people's reactions when people they have borrowed money from fail to make their repayments.

One in four respondents stated they don't want to ask for the money back because it feels too tough and uncomfortable, while more than three-quarters acknowledged that they feel uncomfortable asking a friend or loved one to repay what they owe.

This explains why a third of people surveyed would rather text or contact someone to ask for money they are due back than speak with them in person.

The question of what to do when someone begs you for money or refuses to pay you back is one that has no simple solution.

However, it's important to keep in mind the value of self-control and the ability to say "no" when it's appropriate.

Discipline is vital when it comes to managing your finances, so don’t feel you have to be a people pleaser.

Ultimately, it might not be good for you, your relationships or your money.

If you have any questions about the best way to manage your money, please get in touch with the Future Life Wealth Management team by going to https://wealthmanagement.uk.com/ .