Social Lending

Borrowing From Family

Sometimes people are tempted to borrow from family members. This can be a great way of getting a loan at a lower interest rate than a bank would charge. Sometimes you will even be lucky enough for your family to lend you money for nothing at all. However, it can lead to stress between you.

If the family notice you spending money on things that they think you can’t afford or perhaps feel that you should be paying the loan back more quickly then it could cause problems between you. If you do not come up with a formal repayment plan and then suddenly the family whoo lent the money suddenly need it back, it can put you in a very difficult position. If you find you cannot pay as much back as you initially agreed then this can cause problems as well.

A solution to this is to use social lending. The social lending company will act as a mediator and you will be able to work out a repayment plan. This should help you keep a good relationship with the person you are borrowing from. They will be able to work out a repayment plan with you and then you will both be happy. You should be able to forget about the loan and it will not have an effect on your relationship.

It could be well worth using this solution to help you get the money that you need but not ruin a relationship that you have with a family member. Falling out with family is never worth it, however much financial trouble you are in. If you feel it is your only financial choice, then you can use social lending as a solution to help you both keep on track, with both your relationship and your repayments.