Category: Money

Money

Is Borrowing from Friends a Good Idea?

There are many people that borrow money from friends. It can seem like a good idea to ask them to lend you some money until you next get some, so that you can afford what you need. It can be very quick and easy and you will not normally have to pay interest on the loan either and therefore it is cheaper too. In some cases it could help you to build up a better friendship with them but it unlikely to be a good idea in the long run.

It can be that the friend decides that they need the money back really quickly. They may have a bill that they need to pay or just want to buy something and they do not have enough money because of what you borrowed. You then may be asked for the money back, but you may not have it available. What happens then will test your friendship. You may feel guilty, try to borrow elsewhere and give them the money back. You may refuse and explain you do not have the money then they get cross with you and your friendship breaks down. Even when you do pay it back, they may still not be happy with you.

There may be a misunderstanding about when the money will be paid back and whether interest is due or not. Unless you have everything written down, you may not be able to agree on things like this. This may not only result in you arguing about what you agreed to do, but also in that disagreement between you never recovering and your friendship suffering as a result. Even if things are written down one of you may decide that you want to change the terms and you may argue about that.

It may also have an effect on your relationship with other friends. Imagine if you agree to lend one money and then another asks but you do not have enough left to lend them any. What if you do have enough but you do not trust them to pay it back, but they know you lent to someone else and have money. You could put yourself into a difficult situation and it could mean that you ruin your relationship with this friend.

So things can get complicated as it is possible to argue over what you agreed with the person you lent money to. Even if you have the terms written down, it could still cause problems if either person does not stick to the terms or maybe does not agree with them. It may be that one or the other of you changes their mind perhaps they can’t repay on time or they want the money back more quickly. This doesn’t happen with a bank or other standard lender. Although they can be more expensive or more complicated to apply to, it can be worth considering whether it is better to pay this extra money and to preserve your friendships.

It can be really difficult if you find it difficult to borrow money elsewhere. You may already have loans or have a poor credit record or need the money very quickly. It can then be tempted to ask anyone that you can for money. However, it is worth thinking about whether it is worth risking your relationship with that person just so that you can have some money quickly. There may be other options which you could use, so do some research first and check out your options.

If you are in the position where you are asked to lend money then it can be difficult to refuse, especially if you think that it will help your relationship if you do lend money. However, it is worth understanding what the consequences might be in the future if you do lend the money. There are ways to turn down people who ask by being polite and friendly explaining either the reason why that you are worried it will affect your friendship or by just saying that you have the money earmarked for other things etc. It all depends on the person and your relationship with them as to what approach might work best for you.