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Should You Borrow Money To Family Or Not?

Before you decide to borrow a certain amount of money to relatives and, ask yourself why are they borrowing the money from you. Are they in a bad financial situation? Do you think that they will be able to give you the money back in the future? And most importantly, why did they come to you for money? Something made them believe that you have the money to borrow them. Perhaps they got the impression from your lifestyle, private business, a car you are driving which makes them think that you live a good life and that it is not a problem for you to borrow them money. But they do not know whether you have a credit or not, how much you tried and how hard you work to live the life they dream of, and they do not know whether you have money or not. But that’s not as important as your decision to give them the money or not. If you want to know more about loanbridge do not hesitate to call us.

Do not be surprised when relatives notice your new smartphone or the effect you have from the cosmetic surgery. They just assume that you have money. Also, do not be surprised if you borrow them money to start a new business and they purchase a new car or they go on a vacation with your money. And you stay at home that summer because you had to borrow them money. Not so impressive, right? However, not all loans to relatives and friends have such unexpected outcomes.

Of course, always think twice before you give them money in their hands.

First and foremost, to save yourself from stress and nervousness, calculate whether this outflow of money from your pocket will disrupt your financial situation in case they cannot repay the amount on time. How would this outcome reflected on your lifestyle? Because there is also a possibility that you won’t get that money, ever.

Consider – if there is another way you can help them? Can you offer them a job or another way to make money?

If you have decided to give them the money, give them an amount so that if they do not return it, you won’t feel such a huge financial shock.

Be loud and clear when you negotiate the terms for repayment of loans. And write a repayment plan. If, however you haven’t received the agreed payments, call them and remind them of the promises without feeling guilty or ashamed.

There are people who follow a simple rule and that is to never to borrow money to anyone, not even family members. Therefore, make sure you only borrow money to the people you trust the most because if you do not trust them enough, you will have problems and think about the money every day. You do not want those kinds of problems in your life, right? Nobody does. So, think about it carefully before you make a final decision.

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