Asking your family and friends to lend you money often can be an extremely embarrassing and complicated situation for you, and that’s why you need to make sure that you’ve other easy and best financing options.
When you’re in need of some extra cash, you might be tempted to ask a friend for help with a quick loan. That isn’t the best idea.
Find out why you should rethink your plan to ask friends for IOUs.
It Puts Them on the Spot
One of the reasons why it’s a bad idea to ask a friend for an IOU is that it puts them in an awkward position. They might feel like a terrible friend for saying “no” to you, even if it’s in their best interest to keep their money to themselves. And you don’t want to guilt your friend into lending you money on the off chance that it will hurt your feelings.
Your friend cares about you, but they might not be comfortable taking this financial risk for you. It might be better to ask them for a different kind of help that could make your life a little easier, like carpooling together to cut down on transportation costs.
It Can Change How Your Friend Treats You
Say your friend agrees to the loan — it could change how they treat you. They might scrutinize your spending decisions and budgeting problems. They might pester you with reminders to repay them. And they might get impatient or angry when you take a little too long to accomplish this goal.
It Can Change How You Treat Your Friend
A loan can affect how you act, too. You might feel monitored or judged whenever you make a purchase in front of them. All the moments of fun and levity that you have with this friend are tainted by the fact that you owe them money. It could push you to avoid their company until the problem is dealt with.
The entire dynamic of your friendship could completely change.
It Could Ruin Your Friendship
And the biggest problem is, of course, that you might not be able to pay them back in full or on time.
When you owe a major creditor some money, you accumulate interest and penalties. Your financial mistake leads to financial consequences. But when you borrow from a friend, the consequences aren’t entirely financial. They’re emotional. You could lose a friend over a loan if you don’t take it seriously.
What Other Options Do You Have?
If you need some financial help, you should reconsider asking your friend for an IOU — or at the very least, treat it as a last resort. You can try these options instead:
Credit Card
You can use your credit card to cover a problem that you technically can’t afford to pay for at the moment. This is a fine option, as long as you’re not close to your limit. Maxing out your card will create more financial trouble for you.
Personal Loan
Or you could take out a personal loan online. You could go to a website like CreditFresh to see whether you meet the qualifications and send in an application. If you’re approved, you could use the funds to deal with your problem.
This is an ideal option for dealing with small emergencies, like unexpected car repairs or appliance replacements.
Selling Something
Finally, if you’re not under a tight time constraint, you could sell some of your gently used items to make some extra cash. Look at all of the best websites to sell your things and make a decent profit. You can sell everything from clothes to old childhood collectibles.
Friendships are priceless. Don’t risk ruining your friendships because of money. There are better ways to get financial help.
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