If you know your personal finance basics, you will know that the cheapest loans available will be from your friends and family. A lot, if not most, people would never even consider this. They would regard this as an imposition if they thought of it at all. But, there are times when this could be your best route to solving your financial problems.
There is a downside, and it could be disastrous for you. Because there is no faster way to lose friends and cause family strife than if you borrow money and fail to pay it back by the due date. You are balancing your happiness against a financial advantage.
So you have to be careful. If you are lucky, you are dealing with people who trust you absolutely and who would not hesitate to loan you the money. So it is up to you to take some precautions.
Make absolutely certain you can repay the loan at the due date, or at the specified monthly date, whichever repayment method you agree on.
Try and borrow money from those who can afford it and who would not miss the sum on a day-to-day basis. You really do not want to create financial pressure for someone because they have loaned you money.
It would be well to keep any loan on some sort of official footing. Draw up a document detailing your commitments and sign it. Always offer to pay interest on the loan and if that is refused, buy him or her a present once the loan is paid off in full. Do not ever buy them a present with money they have loaned you.
And to repeat myself, make absolutely certain you can repay the loan at the due date, or at the specified monthly date, whichever repayment method you agree on.
Borrowing from friends or family can be very advantageous but it comes with the risk of losing your friend or causing bad feelings in your family. Make sure you know your personal finance basics and understand all the risks, benefits and options open to you before you start. Visit firstqualityfinance.co.uk/loans-for-bad-credit/.