Borrowing money from a friend can be a super sticky situation – whether you’re the one borrowing the money or dishing out the dough. But times are tough and sometimes you need cash fast or someone close to you does. It can put you in an awkward position, but here are some things to do to keep things from being as less awkward as possible.
- Get everything in writing. This will help avoid any potential future misunderstandings… like you not getting your full money back or the person you’re borrowing from wanting a higher interest at the end. Think like a bank.
- Treat the loan like any other bill. Just like you’d pay rent, a mortgage, etc, think of this loan from a friend like that, not as something you can just put off and take care of later. If money is tight, be honest with who you’re borrowing from to see if you can rework your agreement or so they know how much time you need to pay them back.
- Don’t lend the funds if it will threaten your own financial security. Of course, you want to help your friend or family member in need. But if you don’t have the financial security to lend someone money, don’t do it! You don’t want to risk your own financial well-being.
- Don’t lend money to anyone with a history of financial irresponsibility or substance abuse. This can be hard, but it really is best not to get involved. Other people’s responsibility isn’t your problem.
- Just don’t do it. Truly the easiest way to avoid all awkward and potentially bad situations.
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