its not really the problem borrowing people money but more the chance of getting it back.
Most people never pay back, from when you borrow them money a few things might happen (at least in my experience).
A) You stop hearing from them
B) If they pay you back, they usually tell you how they hate owing people money, then 2 weeks later they seek a bigger loan.
3) If you talk to them and they tell you how they just got a new watch for 2k, they tell you a story how its really 5k, and how could they have turned it down, they ask you to agree that they made the right choice by buying it, this is all to justify why they didnt pay you back (they dont say it but thats their point).
4) They do check ins, meaning after you spoke to them on the phone for 15 minutes, last few seconds they say something like "hey dont worry, I still remember I owe ya 1000 bucks, have a good night" this puts me in a position where I cant ask him, "Ok when will you pay it back" as he just said he remembers etc
5). Let me know when you need it people, they basically say stuff like "hey I got your 500 bucks, just let me know when you need it and ill make sure to get it for you" I mean why not just give it back if you really have it
Its frustrating as I know the money will never come back, few people care to repay and many simply cant, between loss of jobs or job downgrade + more expenses etc they cant.
