Who would want to owe a friend or relative a debt? Besides being shy of being rejected, lending money to people nearby can ruin relationships. But what if the financial situation is forced and it’s the fastest option?
Borrowing money to relatives can be a quick and flexible solution compared to borrowing money elsewhere. Especially with regard to flowers, where if you lend them money there will be no interest charged. However, there are some disadvantages you may feel when borrowing money from friends or relatives. Here’s the explanation. Disadvantages of Lending Money to a Friend or a relative.
There is no clear agreement
Lending money to people nearby is not like lending to a bank that has to go through a series of complicated procedures. On the basis of mutual trust, a loan from a relative or friend can be obtained only by oral or written agreement.
Of course, it is very risky that it could harm either party. In addition, a good relationship can be damaged simply because of unpaid debt.
Likes to Loose
In addition to being quick and easy, when lending money to people nearby there is usually no binding agreement on the points discussed earlier. Well, that’s what makes a person take advantage of that debt and not make it a priority to pay off it right away.
Until the end of the day, the debt was abandoned. It’s possible that your closest friends will stay quiet and not charge. But that will make their trust in you lessened and even lost.
Sudden Request to Pay
It’s different when choosing a loan from a bank or other financial institution that has a clear repayment period. Borrowing money to relatives who don’t have an agreement allows for ‘billing’ in the unexpected.
If you have more money then it won’t be a problem but the problem is if they charge when you are in a difficult situation or have no money. It can definitely cause headaches.
Besides finding a loan to someone nearby, there are actually other alternatives to getting a loan. One is through Peer to Peer (P2P) Lending.
P2P Lending or better known as an online loan can be an alternative to getting a fast and easy loan process. There are not many required requirements.
However, in practice, you should also be careful about choosing and choosing which online loan to apply. Because few illegal online loans are still in operation and can be detrimental to you.
Therefore, choose P2P Lending or an online loan registered with OJK. Why is that? If you are already registered with OJK, borrowing money will certainly be safer because it is under the auspices of OJK.
One of the online lenders that can be used as an alternative to getting a loan fast and easy is Good Credit. Good Credit provides a loan limit of up to 8 million dollars and you can use it for all your urgent needs. Like, the cost of education, medications, home renovations, and venture capital.
Think About It Before Looking For A Loan
In fact, no one wants to be in debt, other than the demanding financial condition plus the burden of interest that often has to be borne after. However, it is not uncommon for debt to be the best way to go when you are in that position.
The above two types of loans certainly have their disadvantages and advantages. Therefore, it is important for you to consider any risks that may occur before deciding where to best lend. Hopefully, the above explanations can be helpful and can be a consideration in the future.