Lending people money to family or friends can at times be a tricky affair what with giving excuses or go missing when you try getting back the cash.

It’s a tough spot to find yourself in because the last thing you want to do is deny someone the help when they’re genuinely in need of it.

However be wary of these group of people when lending money so as to avoid the hustle of tracking them down when its payback time:

Someone with an addiction

The last person you would want to lend your money to is one who is addicted to gambling or drugs.

The chances of getting your cash back may be slim to none. Moreover, such people tend to use the money to further support their addiction.

If they try to reason with you, claiming it’s because they need help, rather give it to someone else who you know can be trusted to help them or offer to assist them by dealing with the money yourself.

The forgetful friend

That friend who always expects other people to pay for him or her (after forgetting their cash or credit cards at home) is the kind of person who would not even seem to acknowledge that he or she owes you money.

If they can “forget” their wallets at home, how much easier is it for them to “forget” they owe you money?

ALSO READ: 5 money mistakes that you will live to regret in the future

Unreliable relatives

Lending money to relatives can be a touchy subject particularly if you don't get to see them on a regular basis.

Some of them tend to have the notion that there is no time limit when it comes to paying the money back or there's no need to return the borrowed money at all.

If you are going allow them to borrow from you, don’t be scared to set out some terms and conditions, especially if you know that they don’t have a very good track record to begin with.

People with an escalating debt record

While we all tend to deal with debt issues at some point in life, it is important to think twice before lending money to someone who is struggling financially.

If the person is in debt because of their bad spending habits and because they’re deliberately living beyond their means, you should definitely be cautious before lending them any cash.

However, if the person is struggling for genuine reasons and needs some money, then a little help would go a long way to help them get back on their feet.