Borrowing money from family and friends – is it the right choice?
Being in debt is scary. Especially when it’s slipping further and further out of control. It can be tempting to turn to the familiarity of family or friends when you’re in need, borrowing money off them instead of going through more official routes, which bring the added concerns of credit checks and high interest rates. This form of borrowing has become more regular in recent years, with nearly one in five people turning to their family and friends for loans, but it is not without its negatives.
Like all borrowing, it should be thought about carefully. You need to think about whether you can keep up with repayments and what will happen if you can’t afford to pay the money back. This type of borrowing can put enormous amounts of strain on relationships. Especially should a repayment be missed.
A recent survey found that 16% of people borrowing money from friends found it stressful and tedious and 3% admitted that friendships had broken down completely because of the debt owed. Not only can having friends bail you out result in a relationship strain but you will not receive the help you need to ensure you stay debt free and it can also result in the lender struggling financially.
When people are in need, they can feel tense, judged and argumentative, therefore mixing it with friends and family, it can easily turn toxic.
If you find yourself in the red, it’s important to seek financial advice as soon as possible. Clive can help you find the best way for you to get back on the right track.
He has the knowledge and experience to find you the best sensible solution to your problem and help you to feel in control of your finances. Talk to Clive today on 01656 661426 or click here to contact him.