Things To Know While Borrowing Money From Relative, Friend

Money is important in life. It is more important when you have it during the period when you urgently are in need. Under such circumstances people usually borrow from friends or relatives, but paying on time is equally important. Below are some suggestions what to do while borrowing from a relative or from a friend:

Realistic Timeline to pay

You should always try to make your relative or friend understand that you can be able to pay the debt on time. Don’t promise to pay in few days or about a week, but the effort should be to do it as early as possible. Your honesty is most important here as the debtor will understand whether to accommodate your next request.

Make payment on time

Give more priority to pay the personal debt compared to your other expenses. Always know that the other person also needs the money and is unable to use it as you have it with you. It will be more irritating to your debtor if he or she discovers through social media about you going on vacations or dining out without paying the money on time.

Offer paying interest

Do not hesitate to ask. Simply be open up offering to pay interest as an compensate for troubling your relative or friend. Agree to a realistic interest rate. The banchmark of it could be the rates offered by the credit card firms or banks.

Go for written agreement, if possible

If possible try to keep the money matters formal. A simple written note is always suggested so that both of you remember when the money was borrowed and when you have agreed to pay back. It can be referred in future if question arises.

Communicate

Don’t keep yourself in silence mode after receiving the money. Keep communication regular as it will give a peace of mind to the lender. Your disappearance may bother him or her. If you are unable to make a phone call due to busy schedule, try to keep in touch with a simple text message or an email. Do not forget to intimate with changed number if you changing your mobile number.

Intimate if you are unable to pay on time

This is very important. Try to intimate the debtor in advance if you are unable to pay on time so that he or she can make adjustments. You can also pay a small amount and communicate when to pay the next or whole.

Prepared to listen ‘No’

Even though your relative or friend is rich, but he or she may have payment obligations and expenses. Money is equally important and so you may get an answer of ‘No’ to your request.