Family Lending and Borrowing: A Good Idea?

Times are tight for many due to the economic downturn as well as the holiday season. With the credit crunch, more Americans may be borrowing money from family and friends to get by. We recently polled iVillagers on the Dealing with In-Laws and Venting About Family & Friends message boards to get their opinions on borrowing from or lending to friends and family: 

"I wouldn't ask a friend for money. I would ask family -- but only if I was VERY and I mean VERY, VERY desperate. Honestly my DH would probably file bankruptcy rather than ask either of our families. We are very independent." -- imotherothers

"I don't think I would loan money to family. If really had to, I would ask my parents for $$, but that would be AFTER exhausting every other avenue of relief." -- cl-stretch123

"Borrowing money from me or my husband is longer an option! I've been burned by close family and it really hurts my feelings. They buy new clothes, cars, and everything else under the sun while they have an outstanding debt to me." -- pgr_523_2006

"My advice when approached by one of these people? Only lend money, secure/co-sign a debt or cover a debt with your own funds under the assumption you will never see those funds returned." -- mblade2006

"I have one very solid rule for giving or lending money to anyone, be they family or friend: if it's money I will miss from my budget or that I need a requirement of repayment -- the answer is NO. I will never co-sign for anyone." -- tattered_heart

"I make it a rule to never lend money to friends. I do have one girlfriend who is like a sister to me, and she is very financially responsible. We've been friends for years, so if she came to me needing a loan I would help her out as I know she would pay it back and only ask if she were desperate." -- sydney20072007

If you'd like to look into lending money to friends or family -- or you are thinking about borrowing from relatives, CNBC's Carmen Wong Ulrich weighs in on the new trend of peer-to-peer lending and the networks that help formalize these loans:

If you have a question you'd like Carmen to tackle, post it here in the comments or email us directly at ivcommunity@mail.ivillage.com

Watch Carmen Wong Ulrich's 'On The Money' Weeknights 9PM EST on CNBC! Find more information on coping with the economy with our Bail Yourself Out resources.