January 6, 2022

by admin

If you are planning to borrow money from a friend or relative, you have to be careful and mind your words. If you are not able to communicate your message properly to them, it may cause a problem for you.

Some of the people borrow huge amounts of money from their friends and relatives and damage their relationships. There can be many factors that spoil your relationships with your friends and family, such as borrowing a huge amount and not paying back, delay in payments, and many other factors.

If you are in an emergency, you can always go to your friends and family, and they can help you with the loan. Also, they may charge a lower rate of interest and help you in your emergency situation.

There are many loans these days, such as payday loans and doorstep lending, that have a higher interest rate and make it difficult for the borrower to borrow.

Make your borrowing easy.

Your friends or family may be the ideal person to contact and borrow money from in such situations. You just have to take care of your relationship as it should not harm your relations with them.

Repay the amount on time and the full amount. It may sound like a good option, but there are many people who do not know how to borrow money from their friends. Hence, look out for ways, or you can refer to various sources that help you to borrow money.

Along with the convenience, they may be certain risks involved in borrowing money from your relatives.

Calculate all the risks and analyze the situation before getting into the borrowing part. In Ireland, if you do not borrow loans from friends, you can always borrow from taking short term cash loans in emergencies and fund your needs.

Things to remember

1. Set a budget before asking

If you are asking for money from your friends or family; always work out on your budget. You should know exactly how much amount to borrow. Do not be in a dilemma, and do not be confused.

Also, do not borrow more money than required. For example, if you require hundred dollars from my friend, do not borrow more than a hundred and stick to your budget.

If you are borrowing more money, this can have a hitch in your relative to lend you the amount. The numbers should look concrete and should be convincing too.

Also, it is suggested to borrow a limited amount as it may be difficult for you to pay back to the mounds when borrowed. Reaping the amount on time will help you have a clean chit for the future.

2. Be careful from whom you ask.

Another important thing to remember is to be sure of whom you want to borrow money from. Borrow it from someone whom you know will trust you for your situation.

If you are asking for a favor from your friend and that friend does not trust you, it can be difficult for you to borrow. Also, many relatives and friends may charge a higher rate of interest from you.

Do not pressurize your friends or blackmail them into lending you money. Let them make their own decisions and do not color their picture. Sometimes even if you repay the loan in full, it will hamper your relationship.

Hence, it is advisable not to borrow money till the time it is an emergency situation. Always be reluctant or unwilling to borrow money and do not force anybody to give you the required amount.

If you are in Ireland, you can borrow instant loans for bad credit and avoid borrowing from a friend.

3. Get the terms and repayment plan straight.

Whenever you are going to borrow money from your friends or family, always work out the repayment plan and terms and conditions.

These conditions should be agreed upon before lending and borrowing. Everything should be documented to avoid any confusion in the future.

For example, if you have verbally agreed upon the terms and conditions and either of you may divert from the agreed terms, it can cause a problem in your relationship.

Also, if you are unable to repay the loan for any number of reasons, the agreed terms and conditions should be followed. If you have all the intentions of paying money, but you are unable to do so for whatever reason, let your relative decide upon the required action to be taken.

Everything that is documented will never create confusion, and things will go as decided. There are many things to consider before setting up your loan structure, such as the

  • Loan size
  • The interest rates charged on the loan
  • The repayment schedule
  • If the loan payment is missed, what should be done
  • If either party dies, what should be done
  • The principal amount of money.

Conclusion

Do not spoil your relationship because of your loan borrowing. Always keep the focus on the relationship and then ask for any amount. You can always refer to the above-mentioned points and then make your mind. Lastly, keep everything documented and do not rely on any verbal agreements.

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