Whatever happens, your family is still your family. You were born into one and you didn’t have a choice – your family is your family and it is your role to make sure that it works out for you and everybody else. While there may be some conflict from time to time, families generally bond together and pull through and give each other a helping hand during tough situations.
If you’re caught in a financial bind, your family could be the first ones who could offer assistance. Sometimes, it’s all about knowing how to ask for it and making them feel secure that the money that they give you is going to something really productive.
1. The first thing that makes borrowing money from family easy is to make them a part of your life even before the need for money arises. Popping up out of nowhere because you need to pay rent or the bills can be quite a turn off for a lot of people. Don’t be too proud by keeping your struggles secret. If you just open up, you would be surprised at how willing your family is to extend a helping hand.
2. Be sensitive with the different situations and circumstances surrounding each family member’s financial standing. It would be very hard to borrow money from someone who is battling a chronic disease or someone who is currently doing a big construction project such as a house or a new business establishment. They may help you, but you may end up burdening them.
3. Discuss the terms of the borrowed money through a formal meeting. There would probably be no need to have a contract signed but the terms would have to clear. Be prepared to answer questions like:
- How much money do you want to borrow?
- Where will you use the borrowed money?
- Do you have a job? How can you pay your debts?
- What would be your paying strategy and can I expect an interest?
4. The conversation will probably not be as formal as business meeting but when talks involve money, people usually kick the serious mode into high gear. It’s no laughing matter. They may be more likely to give you some slack since you’re family but they would generally want to be paid back.
5. Honor your obligation and don’t just think that you can get away being late on your payments just because you’re borrowing from relatives. If you don’t win their trust, you probably won’t get another chance next time. You do know how news around the family spreads. If you rescind and fail to deliver on one agreement, it will be highly doubtful that other family members would be that trusting in the future.
Your family is a group of people that you can lean on. If you can be honest that their money is going to be something that is potentially productive, you might just win their trust. Be clear with your intentions and stay true with your promise to pay them back.