Borrowing Money From Family or Friends
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How to Borrow Money from Family and Friends
Many times, instead of borrowing a small amount of money from a lender you will just opt for your friends or family. They will be less harsh on you then lenders, and there are not as many qualifications. Here are some tips on how to go about borrowing money from family or friends. Even though it is not a major lender, you still need to make sure you are safe.
Write Everything Down
Now, I know you are not going through a lender, and you do not feel like you want a legal contract, but still write it down. This way you know who exactly you borrowed the money from and how much you borrowed. Then agree on some pay back date. Write all this down so there is no confusion with either party. It is just a good way to keep track.
Collateral
This is a good thing to practice. If you want to borrow some money from someone, then you should give them something as a show of good faith. Whether this is money up front or a small item, it does not matter. But this shows the people you borrow money from that you are confident you can pay back on time.
Ask Yourself the Key Questions
Before you borrow you really need to ask yourself a few questions. Why do you need this money? List the reason why and then think about any other ways that you might be able to afford this thing, or if you need it at all. How are you going to pay this back? Do not borrow money without knowing that you will have a solid way to pay everything back. If you have no way of paying it back successfully, then wait until you do. Is this a one time thing? You cannot get in the habit of borrowing money. So you need to put an end to this cycle as soon as possible. Note the steps you are taking in order to make sure you do not have to borrow money again.
Borrow Safe
Know that this should really be treated like any other loan. Your family or friends might be more helpful and not make you pay quickly, but that does not matter. You do not want forget or be relax on the payment. You do not want to end up alienating your family or friends because of some money! So make sure that everything is written down, and that you pay back in an orderly fashion. You do not want to continue to borrow money, so make sure you do it this one time, and then change your lifestyle to help your finances.
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