[originaltext]W: (6-1) What should be noted if I can afford the loan, and plan

W: (6-1) What should be noted if I can afford the loan, and plan to help my family?
M: (6-2) Getting the details. You should know what will this loan be paying for, how will it affect your borrower’s financial state, and what will be the terms of repayment. Part of the reason family loans are rarely paid back is that they are not discussed enough beforehand. This is your money. You have the right to know where it’s going, what it will do, and how it will be repaid.
W: If I’m lending a relatively large sum of money, is it necessary to draw up a written contract?
M: Of course. (7) Lending money is a business deal, not a friendly transaction. And when you treat it like the former, the experience is likelier to go much smoother than when it’s positioned as the latter. When you draw up a written contract, establish repayment terms—including interest (doesn’t have to be bank-rate interest, but at least something minimal to provide motivation to pay on time) —and have both parties sign. Each of you should keep a copy, and post it on the fridge, as a reminder of what one of you is owed and what the other owes.
W: You know that lending money to family doesn’t always go as planned, what should we do to prevent that situation?
M: To have Plan B.
W: (8-1) What is Plan B?
M: (8-2) Discuss the worst-case scenario and put a conflict resolution plan in place that you both agree on. Things can get awkward when it comes to money, so planning out how you will handle a conflict if one does happen when you are cool-headed versus acting on hot-headed emotion will protect your relationship in the future.
W: Are there any other do’s and don’ts of lending money to family?
M: Yes, there are two more tips that I want to remind you of. The first is, (9) avoiding giving in to emotional bullying. People who need money will sometimes pull out all the stops when trying to convince you to subsidize their life. Stay strong. Don’t let those sad excuses and crocodile tears drag you down, especially when the dramatics are from someone you know better than to trust with a loan.
W: And the second?
M: Don’t expect favor in return. If you want to pay the person in need of money for completing tasks around the house or office, that’s quite acceptable. There’s no harm in earning the cash you need. But if that’s not part of the original deal, don’t expect the borrower to go out of their way to help you with anything. (10) Sure, it’s the decent thing to do—helping someone in other ways when they lend you money—but not everyone thinks that way, and it’s not fair to place those expectations on unsuspecting people.
W: Well, Mikey, thank you for staying with us today.
M: My pleasure.
This is the end of Part Two of the interview. Questions 6 to 10 are based on what you have just heard.
6. Which of the following is NOT what you should know before lending money to your family?
7. What will make it much smoother when lending money to family?
8. According to Mikey, what is Plan B?
9. According to Mikey, what kind of people should you avoid lending money to?
10. What does Mikey think of expecting favor in return?