Why You Should Never Borrow Money From Your Friends
Lending and borrowing money isn’t exactly the two best ideas when it comes to close friends, or even a friend you just met. No matter the amount of money involved in the situation, friendships and money don’t exactly mix well. In fact, money issues are the cause of the majority of divorces these days. If married couples even have a hard time making it through their financial problems together, there’s a small likelihood that mere friends can make it out of a financial situation still friends. The situation can become uncomfortable and awkward fast, and has the potential to destroy the relationship altogether. If you’re thinking of borrowing money from a friend, you might want to reconsider after pondering all the possible outcomes, most of which are negative. Fortunately, there are many other, better and more convenient ways of attaining money if you need to do so.
Just some reasons you should never borrow money from a friend, even a good friend, include:
- Some friends may be bothered just for being asked for help— Your financial standing is majorly a personal thing. Some people can feel uncomfortable after being asked for money simply for the fact that they feel it is none of their business. Others may have a hard time saying no, even if they aren’t in the position to lend money, and can get frustrated at the fact that they feel obligated to help you out just because they are your friend.
- The feeling of having to owe your friend money or favors in return— Some friends can be pushier than others when it comes to paying them back right away. They might be okay with the idea of lending the money to you at first, but can grow angry and weary of waiting for you to pay them back. This can easily ruin even the closest friendships. You may also feel obligated to do whatever the lender says since they spotted you money and helped you out. While little favors here and there might not seem like a big deal initially, they can add up and become an annoying nuisance.
- The potential of your friend to hold the favor over your head— Your friend might expect favors forever, even after you’ve already paid them back. This can be a pain because you will feel almost obligated to constantly repay them in favors or money. It can also quickly become tiring on your part, which will make the friendship exhausting and no longer worth keeping.
- No binding contract involved— Borrowing money from a friend means that there are no binding, signed, or official contracts or documents involved. This means that both parties can potentially have the opportunity of taking advantage of the other.
When it comes to friends and money, these two things are better left kept apart. Money problems are not worth possibly ruining a good friendship, or feeling obligated to serve somebody in return for their favor. If you need money fast, there are fortunately many alternatives to attaining the cash you need. Research these different options so that borrowing money from a friend won’t be necessary.
Just some of these alternatives include:
- Taking a loan out with a bank— If your credit is in pretty good standing, you might want to attempt going straight to a bank and requesting the needed money there. All money loaned will be officially documented and kept track of so there will be no mistakes when it comes to paying the money back.
- Applying for a car title loan— Car title loans, like those offered at Titlemax.biz, are extremely convenient and can be attained super quickly. Your credit score is typically not required so it won’t matter if you don’t have the best credit, or even credit at all. You must own the title to your car because when opening this type of loan, you are using your car as collateral in order to receive the funds that you need. You car will be appraised and any money received is completely contingent on the value and condition of your car.
- Requesting a payday advance loan— Similar to a car title loan, payday advance loans do not usually require a credit score so they are relatively easy to obtain. One of their only drawbacks is the sometimes high interest rates that go along with these types of loans.
- Selling old or unused items— As a very last resort, you may want to look into holding a garage or yard sale and getting rid of any products in your household that you no longer use. This will enable you to get rid of some junk while making money at the same time.
Remember, you always have alternatives. It’s never worth having money come between your relationships.
Sally Hanson is a frugalista who shares her tips for saving money with followers all across the web.
Category: Financial Planning
