We all need a little help now and again, and if it's a matter of needing a couple of hundred bucks to make rent this month because you're a little short, then 9 times out of 10, your friends have got your back.
Put another twist on it, add a little irresponsibility, and a termination at work due to your own inability to wake up on time, and you've got a totally different situation. When a loan has a little more potential to hurt, that's when it becomes a problem between friends.
If you have money, and you have a way to pay it back, and you are a responsible human being - everyone down the block will loan you money... even banks will throw money your way. But when friends or family have to ask for a loan, it's going to get a little sticky.
This article will cover the following topics:
- People who lend money
- Get a personal loan
- Lending money to family
- Peer Lending
People Who Lend Money
People who lend money have money - simple as that. Not too many people go about making it known that they are lending money out or he would be placing himself in danger. There are a few people that make it public that they will assist people, but for the most, only your closest friends will know that you have money to lend.
People who lend money, try to help those that are less fortunate. They will do work within their community, and fund projects that benefit his community. It not only is a great write-off, but it makes them feel like many others that have given back something to their community.
When a person inherits a large some of money, it becomes a challenge to keep most of it from going to the government. A lot of times, donating to charities starts off as a way around taxes, but soon turns into true altruism when they take notice of the changes in the look of their community, and those that live in it.
Get A Personal Loan
Loaning institutions make loans available to people on a daily basis - it doesn't matter if you have bad credit, but you do need some credit. If at all possible, even if it means that it will cost you fees, and interest, I recommend that you get a loan from a lending institution.
Do your homework and get the best bang for your buck. Check out who has the lowest interest rates, and research all the possibilities. Check into penalties for early payments, and find out what penalties there are for late payments.
If you have collateral, you'll be in a better situation, but find out what happens to your collateral if you run into a little trouble. Make the best choice, and don't sell yourself short - a little trouble doesn't spell trouble for you, it may just take a little interest to push through.
Getting a personal loan is often the better choice when it comes to loaning money from friends or family. I have seen to many friendships and family members fall apart. If it means paying a little more to preserve relationships, I'm all for it.
Lending Money to Family
Every time I've heard of someone that made a loan from a member of the family, it resulted in pure turmoil, trouble, misunderstanding, and a separation of family members for a number of years. In my personal dealing as borrower and lender, it didn't turn out well for either of us. At some time, someone had to be the bigger person and let the loan go for the good of the family.
I've seen well to do families torn apart for moneys not paid back by children that felt that they were entitled to keep it all. I've seen the elderly suffer on fixed income because their child had tried their hand at a business that failed terribly.
If you have the capability to walk away from money being owed you by a member of your family, then it may as well be a gift. Put a ribbon on it and just give it to them, with the agreement that if anyone else in the family needs help that they will do the same.
When it comes to asking buddy for money, you need to do your own homework. You need to have tried to go to lending institutions. Your buddy knows how it works - he/she is wondering why you haven't gone to the institutions before coming to them.
Before you even consider your friend, make sure it's your last resort - yes, even after your family because that's what they're thinking. You need to exhaust all your avenues - that means that you've already asked your boss for an advance. Once this is all done, you still need to take care of a few things before talking to your rich friend.
Know exactly how much you need - not with cushion, but with whatever you are willing to cut back on. Know how you got into this mess, and have a plan to not get back into it again. They say when you're in a hole, stop digging. All other unnecessary frills and what-nots will have to stop. You are showing that you will take every precaution in making sure that you don't turn into a money pit - the worst thing you can do is go back and ask for more money because you forgot to add your unpaid child support payments that the state is now demanding.
Take a look at your expenses, and at the amount of money coming in from your job, from here you will realistically figure out how long it will take you to pay off your debt. Make sure everything is open for your friend to inspect should he/she want to. Once you have it all worked out, you need to contact him - a nonchalant meeting at your house or his is fine. Don't go to a restaurant where you will incur more debt, keep it simple, and keep it between just the two of you. If you have a good relationship, Mr./Mrs Moneybags will already know what's up.
It could go either way. If it works out great, if it doesn't, you'll probably feel a little differently towards him/her, but you have more important matters to be worried about. Remember, that you can get through the storm, the human spirit can endure and overcome tremendous odds. Don't give up, re-plan, make cuts where ever you can, and know that although the night may be stormy, joy still comes in the morning. In all you do, have peace. Kawi.