Why one should not borrow money from friends and family

Every person will have budgetary crisis in some part of their life. Many are not born rich. Nearly half the population are living a middle-class life in the world. People work day and night to earn money and try hard to save some money for the future. This money may or may not be enough for their future endeavors. This is when they depend on banks for loans. Banks usually do not give loans to all who ask for it. It does background verification on the person’s financial status and checks if he or she can repay the amount with the salary he or she gets every month. So, people who are not financially stable seek the help of friends and family who are money lenders. There are many disadvantages of borrowing money from family and friends.

Disadvantages of borrowing money from friends and family

This mainly becomes a problem when the borrower is not able to repay the amount. Many people think that lending money to friends and family is way much easier than lending to someone else thinking they might not get repaid. But reports say that lending money to family and friends gives many negative experiences than lending it to someone else. They are usually open-ended loans. This is because the parties do not sign any agreements on the timeline for repayments and lend money without interests. The borrowers will not know when to repay the loans nor would the lenders know when their money would be repaid. This makes the borrowers make their loan payment last priority. The lenders in this case cannot ask the borrower for the money as they care for them and might find it awkward at times. It can lead to relationship problems and the borrower might also feel hurt to see the money lender at family gatherings. Sometimes, the borrower becomes a servant to the lender doing what the lender wants. There are times when the borrower can also ask for more money without even repaying the previous loan. These cases will make it difficult for both of them. Instead the borrowers can borrow money from money lenders.

Singaporean money lenders

They can read more about moneylender interest and borrow money from highly regarded money lender in Singapore. These money lenders offer loans for education, personal and business loans. They do not verify the documents as it is done in banks but approve money right away. JeffLee is a trustworthy moneylender Singapore based company that mostly helps people who need money.

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