It can be very tempting to ask your friends or relatives for help when you need to borrow money, such as a quick loan or instant nip instead of alternatives. However, you have to think carefully about whether you can afford the money back and what will happen if this is not possible.
Borrowing from family members has both its pros and cons, which you need to think about well before you take out a loan and weigh it with each other to know if this option is right for you.
When borrowing money
From your relatives successfully and everything works, this can be an extremely good way to get the money you need, for example in an emergency, while avoiding the high interest rates and costs of other loans, such as instant loans and instant loans. Especially if both sides, both the borrower and the borrower, are convinced that the money will be repaid, but even if it were prevented, it would not affect the family ties. In this case, the entire family intervals are not put at risk. If, on the other hand, you borrow from a friend, it should be borne in mind that non-payment of the loan may end the friendship at that place.
If you decide to borrow money from relatives or friends, make a plan for yourself how to repay the money in advance. Of course, this should include income and monthly expenses to know how much extra will be left after the mandatory payments have been made.
If the extra money is left over
This can be used to pay off the loan. Before budgeting, for example, you need to record the income and expenses for the last 3 months so that you can make a realistic budget and payment plan. In all cases, defaulting on a loan, or late payments, is stressful, but in the worst case, it can leave a relative or friend in trouble and cause problems with the relationship.
For this reason, it is very important that the payment plan is carefully prepared and if it needs to be changed, it must be done as soon as possible and the person who borrowed the money must also be informed in good time of the changes. If borrowing money from friends or relatives is uncomfortable, you can borrow money through others. Nowadays, instant loans and other loans are easily available online, so there are always ways to stay in touch with relatives and friends.
There are also some things to think about before borrowing or borrowing. First of all, it can be very difficult for friends and relatives to refuse when your neighbor asks for help, because of course you want to help the most important people. However, there is no idea to go get yourself into trouble, just because you want to help, or because refusal causes anger to the lender and conscience pains the lender.
One also has to consider
Whether loan arrangements are one of the things that can easily end in a breakdown in relationships. Money problems are one of the most common problems in families, so you should not ignore this right away. If you are considering giving a loan, also consider whether you are able to give it yourself and whether the person to whom the loan is being granted is able to pay it. For example, when a budget is made together, both parties will have a safer and more confident loan arrangement.
Even if the loan is small and it is given to someone you can trust, it is worthwhile to agree something on paper. This applies to all cases, including those in which the lender is closely related. And of course, once a loan is made, the same person can quickly be at the door again, or at worst, more relatives and acquaintances asking for money. The written agreement protects both parties, as human forgetting and misunderstanding are part of life. When everything is on paper, avoiding nasty situations where both parties feel cheated, and borrowing from friends and relatives can be handled smoothly and with great success.