Should You Borrow Money from Your Friends?

Should You Borrow Money from Your Friends?

M
by Micah James — 4 months ago in Finance 2 min. read
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You’re in a tricky situation. You need some money, but you’re not exactly sure how you’re going to get it. You’re considering going to your best friend to ask them to help you out with a loan. But is that a good idea?

The Problem with Borrowing from Friends

Your friend is very likely to say “yes” when you ask for a loan. They’re your biggest supporter and cheerleader! They love you! Of course, they’ll come to your rescue when they can!

That’s not the issue. The issue comes after you get the money and spend it. Will you be able to repay them quickly? Will it take a few weeks, months, or years to get back to them? What if you realize you can’t repay your friend in a reasonable time or manner — if at all?

Loans and Friendship Don’t Mix

If you’re not careful, you could do real damage to your friendship. Your friend could feel frustrated and taken advantage of when you don’t pay them back within a set timeline. They could quietly judge your spending decisions and resent that you haven’t prioritized their repayments. They might find that you’re no longer trustworthy and limit their interactions with you.

And even if your friend is completely comfortable about lending you money and relaxed about repayments, are you going to be okay with the situation? Will you feel guilty that you’re not paying them back fast enough? Will you wonder whether they’re judging your finances? Will your interactions be tainted by this strange new dynamic?

These scenarios aren’t wholly unbelievable. There is plenty of proof that money ruins relationships that were seemingly strong and happy. You have to ask yourself whether you’re willing to risk your friendship over financial help that you could get elsewhere.

What Can You Do Instead?

So, if you’re not going to ask your friend for some money, what can you do to make an important payment? Here are three options that you should consider:

Also read: The Top 10 In-Demand Tech Skills you need to have in 2021

Use Your Credit Card

You could put the charge on your credit card and then steadily pay down the balance later on. Only do this when your current balance is low. You don’t want to push it too close to the limit or max out your card.



Apply for a Loan

If you need funds to cover an emergency expense, you could try applying for an online loan as a solution. Be sure to apply for a loan that’s specifically available in your home state. For instance, you’ll want to try to get an online installment loan in Alaska if you live in Anchorage or Juneau. You don’t want to waste your time applying for an option that isn’t available to Alaskans.

The benefit of using a credit card or online loan is that there is no emotional side to the repayment. It’s strictly financial. If you’re late on a payment, you’ll collect a penalty or fee.

Asking for a Gift

Financial experts recommend that people gift friends money instead of giving them loans when they need help. That way, there is no expectation of quick repayment and resentment when that doesn’t go according to plan. So, if you want to preserve your relationship, you could try asking for a cash gift for help as opposed to a loan. Your friend just might be willing to do this for you.

Your friendship is priceless! So, don’t let something like a loan ruin it.

Micah James

Micah is SEO Manager of The Next Tech. When he is in office then love to his role and apart from this he loves to coffee when he gets free. He loves to play soccer and reading comics.

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