How to Borrow Money From Friends
Things might not always be running smooth. Almost everyone faces times when you have to go through rough financial times. And, in the period of recession, this might be something usual for most of us. You might realize that you are running short of money. You might not have enough money to buy things as ordinary as printer ink refill and toner cartridges. Before things run even more rigid, you need money in your hand. However, you might not find a solution. When you are facing such a problem, it is better to borrow money.
Before you think about borrowing money, you must consider all other options. Borrowing money should be the last option listed on your list. Before borrowing, think about different options such as your cable connection, frequency of eating out, and other unnecessary expenses. You must not ask for money until you really need it because this might mean a bad mark on your reputation in front of your friends.
Inform the lender clearly about why you need money. Your friends will be glad to lend you money only if they know that the cause you want it for is reasonable. For instance, paying the house rent. However, borrowing money for foolish excuses, like paying the expenses for last year’s vacation, is not going to make any of your friends happy.
When you ask friends for money, you should let them know about how much time you will require to pay it back. You must tell them an estimated time by when you will have enough money to repay them. Similarly, make sure you make the payments within that time. You should stick to your word and avoid any delay.
Even if you are borrowing money from your friends, it does not mean that you can rely on the word of mouth. Arrange a contract. In it, write down the amount you borrowed, terms of repayment, due date, interest rate, size of any periodic payments to be paid, etc. Once you and your friend agree on all the terms, sign it. It is better if each one of you has a copy safe with you until the loan is paid back.
It is better if you do not mix business with your personal relations. The fellow who is lending you money might be one of your greatest friends, but it is a money matter in the long run. Therefore, make sure you keep it business-like. Do not assume that you will somehow be privileged when you have to pay the money back. Neither will anyone cut out a few dollars from the actual amount that you have to return. To keep your respect and dignity in the eyes of your friend, do not demand it either.
Lastly, you must take a loan seriously. Just because it is not coming from a bank, but coming from your friend instead, it does not mean you can become careless about it. Pay it on time and maintain your respect. And, once you pay it back, never borrow money again. Stay responsible about your finances and make your living on your own.
