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. Read on this article if you do want to know how this is done.
The first thing that you will need to do is to pretend that the loan is a gift. Getting unpaid is a thing that some loans from friends and family will become. And that is why to save yourself from anger and disappointment then you will need to have this mindset.
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.
Alawys see to it that you will be able to draw up an agreement. Having negotiable instruments is a thing that you will need to do. It is this one that you will need to do to avoid any arguments 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.
If the loan that they will have no due date then you will have it say no to that. It is important to know when you are going to be repaid. It is the borrower that will make the repayment the last priority once there is no due date.
Always make sure that you will t be losing sight of the relationship. It is the relationship that you have with your friends and family that is more important. It is because of this very reason that you don’t want to lose sight of the relationship. The relationship that you have with each other is much more important than money.
Finding other ways to help them is also another thing that you can do. Seeing if there are any other options available is a thing that you will need to do. The last option that you should have is lending them money. You need to look at any other way to help them.
Always see to it that you will not be lending them money more than what you can afford. The is always a possibility that you will not be getting the money that you have lent. And that is why you should not lend them 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.