Hardly is there anyone who hasn’t borrowed money from a family or a friend. We have all either considered it or done it. It’s kind of sensitive because money and personal relationships can cause challenges. However, you will sometimes need financial help, but how do you handle such a situation without allowing it affect the relationship? Let’s look at how to borrow money responsibly from family or friends without harming the relationship.

Understand the Risks

When you think about borrowing money from someone close, you need to know you’re taking a delicate step, and there are risks involved. Compare it with taking out a credit card debt, if you don’t repay on the said date, there are consequences for that. In the same way, when you don’t keep to your words, there are consequences. The strongest of relationships can be affected by money issues and it can change how one person sees the other. When things get out of hand, it can lead to resentment and even the loss of such relationships. These are things you need to understand before you consider borrowing from a close person. You can’t control how the lender will react when you fail to fulfill your promise, you should be cautious.

Set Clear Expectations

You need to communicate as clearly as possible when you borrow from a close person. Since you’re the one that needs the favor, you need to also let them decide if they are okay with your terms. Don’t say what you don’t mean just to get what you want. Keeping a healthy relationship is more important than your instant need for money irrespective of what you want to use the money for. Your money issue may be resolved but you could have placed everlasting damage on a good relationship.

Be clear about how much you need and when you will return the money. Don’t assume that if you fail to keep your promise they will understand. A close relationship doesn’t substitute for clear communication. To avoid misunderstandings, be clear and mean your words. This will show you respect each other and the seriousness of the transaction. It’s also a way to show that you value the relationship enough to protect it from damage.

Respect Boundaries

If a friend or a family member refuses to lend you money or turns down your request, you should respect their decision. Sometimes, they also have financial challenges they are facing, or they are trying to protect the future of the relationship. Their refusal to lend you money may not be personal or stemming out of a lack of kindness. You can’t force anyone to lend you money, so if they choose not to, take it in good faith.

It’s also important that you respect the lender’s terms and limitations. If they have specific conditions as regards lending the money or repayment, respect it. If you’re not comfortable with it, kindly let them know.

Establish a Repayment Plan

As it has been earlier established, be clear about repayments. It may be easy to get them to fulfill their part of lending you, but the onus lies on you to fulfil your part too (which is the most important).

If you have issues fulfilling your obligation as planned, do your best to ensure you don’t fail to keep your word. However, if you have exhausted all options, don’t leave them hanging. Reach out to them on time, to let them know your predicament, and be clear about your new repayment plan. If they don’t agree with you, you could give them a little time to process their thoughts and then come back to discuss it, if they still insist, honor their decision. Don’t shut them out or block them, be open and honest. It’s called human decency.

Show Gratitude

The best way to show gratitude to a close person who lends you money is by repaying them as and when due. You can also do it in words by telling them you appreciate their support, this shows you’re not entitled and are not using the relationship as a tool to exploit them. There’s a possibility you may need their help one more time, how you treat them the first time can influence their decision to help you the second or third time.

Consider Other Alternatives 

Everyone has their financial issues and expectations. Not every time will your friend be buoyant to help you. You may want to consider taking out a personal loan from a bank, credit unions, or online lenders. If the interest rate is favorable, you can go for this. This is why practicing healthy financial habits is important, so you can improve your credit score and have favorable loan terms in the future or when the need arises.

Conclusion 

There is nothing wrong with seeking help from a close person. What are friends for? You just have to be careful when it comes to money-related issues to preserve your relationship.

If you need help with managing your debt and you want to regain control over your finances, speak with us at EmpireOne Credit. Your debt can be reduced by up to 80% and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!