When and When Not to Borrow from Family

When money needs knock on your door, and after the initial panic, you may think that the solution is as close as your family is close, but this is not always the way it is. Borrowing money from family is always a thorny issue regardless the approach you look at it. Sometimes it is about your own personal considerations, sometimes is about those of your family, but while there is not a rule of thumb to make a decision to borrow or not to borrow from them, the following considerations may help you to decide.

Trustworthiness Into Play

When you borrow money from lending companies, there is often a credit check process that helps them to determine if you are worthy to get a loan or not. When it comes to your family, your trustworthiness might be reduced to the concept they have about you based on different factors as the way you spend, or your lifestyle even if their assumptions are wrong.

What You Think of Them

Opposite to the above situation, your perception about your family’s wealthiness can be wrong. They may look like having it all and spending money jauntily, but you may ignore what they do to create such aura. They might be deeply in debt and unable to lend you a helping hand or they may not have all the money that you think or the immediate financial solvency to lend you money in the moment that you need the help.

Honesty Above All

Being honest with yourself is as important as being honest when it comes to borrowing from family. You may try to skip the high interest rates of payday loans thinking that it is easier to get fast cash from a family member that, by the way, may not ask for any interest in return. If so, think of this family loan as an obligation and repay promptly, and do not get mad at them if they ask for compensation for this help.

Keep it Clear

Even though your parents may lend you money even if you have a disorderly life, borrowing from family is not easy and the loan may end up in hard feelings. So with that said, make sure to learn first what is the financial situation of the family member that you have in mind, as well as their willingness to lend you money before actually asking them. Doing this will preserve your good relations above all else.

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