Factors to Consider When Lending Money to Friends and Family
Lending money that you are able to see some people will be doing. If it is friends and family that will be borrowing money then it is this one that can be different. Read on this article if you do want to know how this is done.
It is important to see to it that you will think that the loan is a gift. Most of the time, loans from friends and family can get unpaid. It is this mindset that you will need to have to have yourself from any anger or disappointments.
Make it a point that you are able to charge an interest. You need to remember that you are doing this one to help them. And that is why you don’t want to discount this one during the repayment.
Drawing up an official agreement is also a thing that you will need to do. It is you that will need to see to it that you will have negotiable instruments. Avoiding any arguments, later on, is a thing that you are able to do with this one.
If it is you that will be enabling the borrower then it is important not to lend them money. It is enabling your friend or family to be irresponsible once there will be browsing money due to the financial irresponsibility that they have done.
It is you that will have to say no to loans that will have no due date. The time, when you are going to get raped, is an important thing. It is the borrower that will make the repayment the last priority once there is no due date.
Always make sure that you will t be losing sight of the relationship. It is the relationship that you have with your friends and family that is more important. Not losing sight of your relationship is a thing that you will need to do due to this very reason. The relationship that you have with each other is much more important than money.
Another thing that you can also do is to find other ways to help. Before lending them money then see if there are any other options available. It is you that should look at lending them money as your last option. Looking at any other option first is a thing that you will need to do.
Lending then money more than you can afford is a thing that you should not be doing. Getting your money back is a thing that might not happen and that is a possibility. And that is why you should not lend them more than you can live without. Looking at the finances that you have is a thing that you should be doing first before lending anyone money.
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