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. Once you want to know how this is done then keep on reading this article.
You need to pretend that the loan that you have given is a gift. Getting unpaid is a thing that some loans from friends and family will become. It is this mindset that you will need to have to have yourself from any anger or disappointments.
Charging an interest is also another thing that you will need to do. It is helping them that you are dong once you will be lending them money. It is this one that you don’t want to discount 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. It is this one that you will need to do to avoid any arguments 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 you that will have to say no to loans that will have no due date. When providing loans then it is important that you will know when it will be repaid. Whenever it is you that will not be setting any due date then the borrower will only make it their last priority.
Another thing that you also will need to do is to not lose sight of the relationship. You need to remember that relationship is important with your friends and family. And that is why it is important that you will not be losing sight of it. The relationship that you have with each other is much more important than money.
It is also you that find other ways to help them. Make it point that you will see if there are still other ways that you can help them aside from lending them money. The last option that you should have is lending them money. See to it that you will be looking at any other options first.
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. See to it that you will not be lending them money 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.