Don’t Borrow Money to Friends or Family! This is the reason

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Unlike borrowing money from banks or cooperatives, borrowing money from friends or family can have serious negative consequences. For whatever reason, for whatever reason, you should NOT borrow money from friends or family. An explanation over at jaluzionline.com

It’s inevitable that sometimes we get overwhelmed by the urgent need and need a quick loan. Nearby people like friends and family are the source of money we can trust.

Then why not borrow money from friends or family?

Then why not borrow money from friends or family?

Debt issues are unclear

Borrowing money from close relatives usually doesn’t have a clear loan contract.

The borrower is having a hard time finding a loan, while the lender feels sorry for the borrower.

If you do have to borrow money from friends or family, make sure you have a clear loan agreement. Include the exact date of repayment of the debt, about the flexibility of payment (if necessary), the delayed payment, or the terms of the installment. Make sure you are a borrower and the lender agrees to all the terms before you accept the loan!

As a result, there is no black on white that speaks of the exact date of repayment, the late payment, or the lender cannot delay the loan interest.

This condition puts both parties in uncertainty. Borrowers are cautious if the lender collects debts on a regular basis. The lender is also concerned that the repayment of debt is not timely.

Debt payment is not a priority

Debt payment is not a priority

Family foundations are a key weakness in lending money to friends and family.

Lenders often ask for a ‘soft’ loan repayment time. So the repayment of debt continues to decline beyond the promised date.

In this case, the lender is a very disadvantaged party. It could be that the lender also has the needs to be met and relies on the money it will pay off.

The borrower should not have an issue with his friends or family. It doesn’t matter how close you are to that friend or family member!

What if the lender suddenly needs the money?

Well, this is one of the things that makes it uncomfortable to borrow money from friends or family.

If the lender suddenly has an urgent need, be prepared to be charged before the repayment date!

Although there is a repayment date, usually when demand is tight, the lender may not care about the agreed time.

At this rate, you as a borrower must feel uncomfortable, right? The debt is charged before the time of repayment.

In other cases, if the borrower is late in repaying the loan, the lender can unilaterally foreclose on the borrower’s property as collateral. Of course, this is troubling. But what is the point if there is no clear loan contract, such things can happen.

It can cause anxiety

It can cause anxiety

Let’s say you borrow money from a friend and pay it off late.

Then when you have a get-together with a friend, it can feel awkward between you and a lender.

You are afraid that outside your knowledge your friend will talk behind your debt because you are late.

Your friends even look at you with caution, worrying that you are going to borrow money again and it’s too late to pay it off.

Things like this happen automatically and affect the relationship between the two people with debt issues.

Feel that you owe more than money

You only owe hundreds of thousands to pay for your child’s schooling. But the sister-in-law who lent you the loan asked you to take her child to school while you borrowed the money.

Although you only borrow money, you will eventually pay for it too.

But often when we borrow money with close relatives, we are also in debt because we are financially helped.

As if after lending money, the lender had control over the borrower’s life.

Did this happen? Of course not.

You as the borrower can subtly reject the lender’s request if you feel uncomfortable doing so.

Destroy relationships

Destroy relationships

What if your friend or relative is rude when you are in debt?

Or what if you were the one who was rude when you were in debt?

It hurts. Feeling disrespected. Feeling lied to.

All of those feelings threaten the continuation of your relationship with the lender.

Former close friends are now the biggest enemies due to debt delays.

Your other friends are finally wondering why your relationship wasn’t close. Eventually, your reputation as a borrower and your best friend as a lender will be tarnished after everyone knows the problem.

Don’t you want that to happen?

In order to maintain a relationship, don’t borrow money from friends or family, yes!

If you need a loan, there are still sources of lending that give you the convenience of making a loan

Just apply for a loan at Good Credit!

Online loans on Good Credit are easy to get! All you have to do is download the application, fill out the requested personal data, and then the loan can melt into your account within hours.

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