We have some financial issue this month. My husband want to lend some money to his parents but i don't think that's a good idea. I prefer we sell some stuff to cover our financial rather than lending money. How can i say this to him without hurting him?

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Lending has never been a good practice unless you have no other option left. It's fine to present your thoughts on this issue, in front of your husband. Just sit down, talk to him patiently, list down pros and cons and then you take a call.