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Scheme Lessons Relative Risk
DEAR ABBY advises strapped relatives to avoid direct loans. Instead, borrowers are directed to seek bank financing with the lender securing the loan. The banker issues a formal loan, with a promissory note and possible collateral, shifting risk and making the borrower feel accountable.
Dear Abby 2: Passing the buck without paying a premium
Beverly Hills Benefactor shares advice on handling loans between relatives and friends by removing the creditor role from the borrower and directing interest to the bank. The borrower can rebuild credit if they repay on time, though this method is not foolproof.
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