Borrowing Money From Friends or Family - What You Should Know
posted on Mar 15, 2021 | 1022 likes
Should You Borrow Money From Friends or Family?
Have an unexpected expense? Salary taking too long to drop or don’t have quite enough money saved for a down payment on a car?
Whatever the reason, if you’re in a tight financial situation, you might consider borrowing money, but is borrowing from a friend or family the best option?
There's more than money to consider before you ask loved ones to help you out, in this post, we will evaluate the things to consider, and possibly recommend a better option of where to borrow money – especially if you need it urgently
When money is involved in a relationship, feelings of resentment, trust issues, and differences in opinion can result.
Besides, about half of those who borrow money, from those their closest too, never pay back everything they borrow.
It's understandable why many people don't recommend loaning money to friends and relatives. Not only are the loans not likely to get repaid, but it can cause relationships to deteriorate.
Yet it’s possible to make it work. When everyone involved in the loan is open and honest, everything is spelled out, you have a good relationship, and you have a signed agreement, it can work.
But before you borrow money from family, friends or even financial institutions like Page Financials, it is important that you get it right from the beginning.
Look at all Your Options First
Consider all your alternative and borrowing options before asking friends or family for a loan. There might be ways to address your financial situation without borrowing from the loved ones in your life.
Some alternative options include:
- Cut expenses wherever possible
- Create a budget and stick to it
- Get a side gig or second job
- Ask for a raise from your employer
- Negotiate your current financial obligations (interest rates and repayment terms with your existing lenders)
Related: Need a loan to pay for a car urgently? Read how to get up to N5M today
Take time to think it through. Weigh the pros and cons before asking for a loan.
Pros of Borrowing Money from Loved Ones
More flexible terms. You can work out the details of the terms of the loan with your friend or family member. Compared to a financial institution, you could have a more flexible repayment schedule, interest rate (if any), and length of repayment.
You see? Fewer hoops to jump through. Your friend or family member may want evidence you can repay the loan. Still, they aren’t as likely to have the stringent requirements of a financial institution.
Cons of Borrowing Money from Loved Ones
Causes stress: If you’re asking a friend or family member for a loan, you’re already under some degree of financial stress. Add to that the fact that you’re asking someone close to you for a loan, and you have social stress too.
It can be hard on relationships: When you add a financial transaction to a relationship, it shifts the dynamics. While it is possible for the relationship to continue, or even flourish, there is no guarantee. If the money causes resentment, guilt, or shifts the balance of power too much, it’s ripe for contention.
It could become a financial burden for your friends or family. Your loved ones might need the money you borrow sooner than you can repay it. And that can lead to some high level of inconvenience between the two of you.
Reasons Why Taking a Loan from A Financial Institution Might Be Your Best Option
In order not to lose urgent opportunities, get chased out of your apartment or your kids being chased out of school, a smart decision would be to take a loan from a financial institution.
Not only does a loan make more financial sense, it is the perfect facility to assist you during planned or unplanned events when time is of essence, it also helps you avoid the cons highlighted above from borrowing from loved ones.
The next thing to think about is which loan company has got the best offer for you, and that is where Page Financials comes in. At Page Financials, you get quick access to loans of up to N5million as long as you are a salary earner and you have the needed requirement.
That’s not the fun part though, at Page Financials, we understand the need to be financially buoyant and that is why we placed a zero charge per transaction on our mobile app, and you can also make swift transactions like paying bills, recharging airtime and making funds transfers using our USSD code *258*3#.
To apply for a loan with Page is simple, visit our online application portal at www.pagefinancials.com/loans.html to apply conveniently online. For further enquiries, you can send an email to firstname.lastname@example.org or contact customer service on 017007243 for assistance
The decision of whether to borrow money from friends or family is a tough one. Under the right circumstances, it can work, but personal loans from loved ones should be a last resort.
If you find yourself in a financial situation and you need money fast without putting your relationship with loved ones at risk, contact a legitimate lender to know the personal loan options available to you.
Visit our blog at https://pagefinancials.com for more inspirations on how to take charge of your financial life.
Also, learn more how we assist salary earners in Lagos, Ibadan and Abuja to access quick loans of up to N5M conveniently.
Call 01-700PAGE (7243) or send an email to email@example.com to speak with us anytime of the day.