Borrow Money From Family and Friends - Debt Consolidation
What to do if friends and family are willing to help, is it even a good idea?
You may be considering borrowing money from family and friends to consolidate debt. No one likes to see a friend or family member struggle with debt. If you’re the one struggling and your friends or family have offered to help you deal with your debts, think about it carefully before you accept their help.
Have a meeting with them to discuss how much money they can lend you, how you’ll use that money, when they expect you to repay the debt and how your relationship will be impacted if you’re either not able to repay them or if they disagree with your financial choices after they’ve helped you out. If you do borrow money from family or friends to consolidate your debts, outline in writing the terms and conditions of the loan.
Often it’s much wiser to rely on emotional support from family and friends, rather than financial. The last thing you want to do is ruin your relationship with those who are helping you cope with a difficult time.
Is Helping a Friend or Family Member with Debt a Good Idea?
When you’re the one wanting to help a friend or family member with their debt troubles, consider carefully what lending or giving the money means to you. There are many ways to support a friend or family member during a difficult time, so lending money that you can’t afford to lose is not your only option.
How to Get Help with Debt
If you or someone you know needs help figuring out what to do about debt, our Counsellors are happy to help. Call us to make an appointment for yourself and to look at your options. Bring a friend or family member along for support if you would like to, but contact us sooner than later to get the information you need to make a decision about what’s best for you.