It is sometimes, but more often true that borrowing money from friends harms or damages friendships. Most people would agree that borrowing money from a friend can be a good idea, because money is needed in emergencies and because friends should be able to help each other out if the need arises.

However, borrowing money from friends has far more negative than positive effects. Borrowing money from a friend greatly damages the friendship, because doing so robs one of trust. The borrower loses faith that their close friend will not fail them, and the lender no longer has a best friend. The borrower may no longer wish to share their burdens, and, at the least, the borrower may feel resentment and anger towards the lender, leading them to avoid the lender as much as possible. Moreover, the borrower is likely to feel guilt over taking the money and may not feel as generous toward the lender in future.

The first point made by the author that borrowing money from a friend can be a good idea, is something of a lynchpin of the argument. If the borrower can somehow repay the money, then the friendship is strong. This assumes, of course, that the borrower has a steady job and is able to pay back the money at a reasonable rate. If, however, the borrower does not repay the loan, then perhaps the relationship will be damaged forever. By lending money to a friend, the lender is putting their trust in the borrower. The borrower has an obligation to repay the money, and failure to do so can sever the bonds of friendship. If the borrower is unable to pay, then the lender will bear the brunt of the loss. If the borrower takes too long to pay the loan back, then the lender may feel insulted. The lender may no longer wish to enjoy the company of the borrower, and the lender will feel betrayed by the borrower.

As a result, the borrower may avoid the lender altogether. This is unlikely to cause irreparable damage, but it may lead to a strained relationship between the borrower and the lender. The borrower may feel too guilty to talk to the lender, and this will cause both parties to drift apart. Lending money to a friend, then, has far more negative effects than positive ones.

The option that the author offers, that it is sometimes the case that borrowing money from a friend can harm or damage the friendship, may be true. However, to borrow money from a friend more frequently than is absolutely necessary is detrimental, because the bond between friends will be broken. Furthermore, even when the borrower pays back the money, the lender will feel a sense of betrayal. The borrower may avoid the lender, and the lender may no longer view the borrower as a friend. Borrowing from friends, then, should be limited to emergency situations only, or only with a trusted friend.