Your Guide When Lending Money to Friends and Family
It is lending money that you are able to see some people will be doing. You need to know though that it is this one that might be different when friends and family will be borrowing. And for you to be guided on how it is done then read on this article.
You need to pretend that the loan that you have given 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.
Another thing that you should also do is to charge an interest. It is this one that you are doing to help them. It is during the repayment that you don’t need to discount this one.
It is also important to draw up an official agreement. You 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 it is you that will be enabling the borrower then it is important not to lend them money. Once you determine that they are financially irresponsible then lending them money is not a good idea since you are only enabling them to be one.
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. Whenever it is you that will not be setting any due date then the borrower will only make it their last priority.
Not losing sight of the relationship is also another thing that you will need to do. 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. 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. Seeing if there are any other options available is a thing that you will need to do. You need to remember that lending them money should be your last option. You need to look at any other way to help them.
It is also important to see that you will not be lending them more than you can afford. You need to remember that there is a chance that you might not be able to get your money back. And that is why you should not lend them more than you can live without. And that is why it is important that you will check your finances first before lending money to others.