Martin Lewis, the founder of the Money Saving Expert (MSE), has given advice on whether it's a good idea to lend money to family or friends. He says that while borrowing from family can be cheaper than using a bank, it's not a simple decision. It can bring up strong emotions like love, guilt, or even resentment if things don't go as planned. Many people choose to lend money to relatives because they feel it's the right thing to do, but this can create stress if the money isn't repaid or if the relationship suffers. Lewis suggests thinking carefully about six key questions before deciding to lend money. These include whether you're being asked to lend the money out of pressure, what you would do if the borrower can't repay it, whether you can afford to lose the money, if there's a better way to help the person, whether the repayment terms are clear, and if the loan will actually solve their financial problem. These questions are meant to help people make a more informed decision that considers both their feelings and their finances. A study by JG Wentworth found that many people who lent money to friends or family faced problems like having to repeatedly ask for repayment, forgiving the debt to keep the relationship intact, or even having serious arguments. MSE points out that even close relationships can be affected by money issues, and lenders should be prepared for possible changes in the way they see each other. Lewis also suggests that there may be other ways to help someone in financial trouble. For example, he recommends directing them to financial advice services, offering a 0% credit card, or helping them find a low-cost loan. He emphasizes the importance of setting clear repayment terms, whether through a written agreement or a clear understanding of when the money should be paid back, to avoid future problems. Finally, Lewis advises that if there's any uncertainty about lending money, it's better to avoid it altogether. He says that the potential for conflict and emotional stress can be too great to risk, especially if the loan isn't certain to be repaid.