Can I Ask my Family for a Loan to Pay Off my Debts?
Debt has always had a degree of shame attached to it and admitting to having problems with debt is like saying you don't know how to handle your own affairs. Some people may get into a situation where unless they get immediate financial help there is a possibility of losing their family home, or their business.
One option is to ask your family for help. Asking for financial help is always a tough decision, but sometimes it is the best option. In most cases a loan from the family would be interest free, but it is a good idea to add on interest or include something extra when the loan is repaid.
Remember, that any money loaned to you from a family member would have earned interest for that person, so it is a good idea to recompense in some way equal to the interest lost.
The important thing is that if you borrow from your family they must be repaid. Put in place a plan that will enable repayment of that debt, plus interest if necessary, within a particular time.
Don't take the loan for granted and don't at any time "use" your family. Any losses you cause to your family will bring about irreparable damage to the relationships, as well as financial losses to the members concerned.
Loans among Family Members
If you borrow money from a family member, one of the steps you should take to avoid trouble is to clearly document that the money has been received as a loan. You should also document that it is received with or without interest payable.
It is a good idea to document things because that family member or you could die and the details of the loan would be hard to put together. It doesn't have to be a legal document, but it should clearly outline who is the lender and who is the borrower and the amounts concerned. It should also outline the interest payable and the repayments that have to be made, either monthly or quarterly.
The final thing it should contain is the date the loan should be repaid by. Make sure the document clearly establishes that it is not a gift, but that it is a loan. There are a few things that create problems within families and destroy relationships more than loans that are made and not repaid. Set out a plan for repayment and keep to it.
Copyright 2005 StartRunGrow
http://www.startrungrow.com
StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.
It has always been an issue for home buyers to... Read More
Are you paying out too much every month for your... Read More
If you find yourself in a situation where you need... Read More
A quick cash loan also called payday loan, cash advance... Read More
Cars ? they are your passion, necessity, luxury, earning member.... Read More
Getting a loan to buy your new car is, you... Read More
A Payment Protection Plan is an insurance cover you would... Read More
Here is a useful beginner's guide to bad credit secured... Read More
At some point in your working life, you may find... Read More
The most important and difficult part in farm mortgage shopping... Read More
Payday loans have many names -- cash advances, signature loans... Read More
Refinancing your loan is one of the best kept secrets... Read More
If you invest in real estate, you need cash to... Read More
What are the opportune times to avail of military payday... Read More
If you have poor credit or a recent bankruptcy, you... Read More
If you are in a hurry for a payday loan,... Read More
Martin graduated of the college with dreams of a highflying... Read More
When borrowing money it is usually because we lack the... Read More
Refinancing your car loan is an ideal way to lower... Read More
Like most people, you will probably wait until submitting a... Read More
Typically Cash Advance Payday Loans have no credit checks, and... Read More
If you're searching for an adverse credit homeowner loan, you... Read More
A second mortgage is a loan that is secured by... Read More
If you have been injured in an accident it is... Read More
Parents should begin saving money early for their children's college... Read More
With less than a week before she was to receive... Read More
If you're getting in over your head with credit, you... Read More
It's possible to receive up to 500 dollars cash overnight... Read More
Some weeks it feels like you're living hand to mouth.... Read More
Predatory lenders promise loans that are "too good to be... Read More
If you live in the United Kingdom and find yourself... Read More
It can seem impossible at times to get bad credit... Read More
VA loans are basically mortgages or home loans geared towards... Read More
There are many types of loans available to consumers. There... Read More
Have you ever felt like you bought an auto and... Read More
Enervated by the hectic schedule at the work place, traveling... Read More
Big financial goals, no security to supply - it is... Read More
If you are in a hurry for a payday loan,... Read More
Have you been trying to find out what bad credit... Read More
Fast car on open roads. It is a perfect picture... Read More
Getting a loan to buy your new car is, you... Read More
Homeowner loans UK are a very versatile type of personal... Read More
Here is a useful guide to Bad Credit loans. Bad... Read More
Listed below is a guide to loan terms. It is... Read More
A loan is the reason many students are able to... Read More
Most Internet users are now extremely comfortable using the Internet... Read More
If you need a fast way to get an emergency... Read More
A home equity loan is essentially a type of second... Read More
Payday loans offer a fast and easy solution to financial... Read More
You need some more money for college expenses this semester.... Read More
Did you know that if you have a home that... Read More
The internet is teeming with lenders who are vying for... Read More
A $500 payday loan can be a real life saver... Read More
Parent Loans or Student Loans ? what is going to... Read More
You've probably spent years thinking that your dream car is... Read More
The dynamics of loans borrowing procedure has brought new ways... Read More
Online cash advance companies offer a convenient and speedy application... Read More
You might find yourself wondering about the origins of online... Read More
Happiness is what they're selling. Relief from the crushing weight... Read More
Are you approaching towards a payday loan cash advance? Is... Read More
Secured Personal Loans are those loans against which you don't... Read More
The usual modus operandi in most automobile purchases is as... Read More
Listed below are some of the many reasons why you... Read More
Title loans have the same features as a secured loan,... Read More
Personal LoansNormally, a personal loan is unsecured meaning there is... Read More
There are a number of different loan products available today,... Read More
Loan |