Friends and family

You could always try asking your mum or dad for some money. Why break the habit of a lifetime!  

Seriously though, friends and family may be a good source of borrowing, but you need to treat this approach with caution as it can be fraught with emotional issues and unintended consequences for your relationship if you have difficulty in paying them back.

Remember that any money you borrow may have an impact on them as well. Make sure that you both understand each others' expectations. They could have budgeted for the money to be returned over time, so it is important to work out how you can pay back the loan. They may agree to accept the money at a later date. They may even be prepared to accept a small sum of money each month or over a fixed period of time.

When in debt to friends and family, you ought to consider how your behaviour is perceived by them. If you are seen spending wildly, this may not be appreciated. After all, you owe them money and if they see you spending on what they see as unnecessary products or services it could damage your relationship with them.

Top tips

  • It is worth getting a legal agreement drawn up stating the terms of the loan and how it is to be repaid.
  • You could put money into the person's bank account on a regular basis by direct debit. Just tell your bank of their details and it will happen automatically.

 

  • If you borrow from friends and family but fail to pay them back, you could lose their friendship and support, which should mean much more to you than the sum borrowed in the first place.

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