Your Guide 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. Once you want to know how this is done then keep on reading this article.
The first thing that you will need to do is to pretend that the loan is a gift. It is common to see loans from friends and family that can get unpaid. And that is why to save yourself from anger and disappointment then you will need to have this mindset.
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. It is during the repayment that you don’t need to discount this one.
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. Whenever it is this one is what you are able to do then you can avoid any argument later on.
If you think that you are enabling the borrower then don’t lend them money. If the family or friend that you have is financially irresponsible then lending them money will only make them more irresponsible.
It is also important to say no to loans with no due date. The time, when you are going to get raped, is an important thing. And once you will not set any due date then the repayment will be the last priority of the borrower.
Another thing that you also will need to do is to not lose sight of the relationship. Always bear in mind that the relationship that you have with your friends and family is the most important. Not losing sight of your relationship is a thing that you will need to do due to this very reason. It is the relationship that you have that is 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. You need to look at any other way to help them.
Lending then money more than you can afford is a thing that you should not be doing. The is always a possibility that you will not be getting the money that you have lent. Lending them money more than you can live without is a thing that you should not be doing. Before lending money to other people then see to it that you will be looking at the finances that you have first.