Why Money?

Getting money from the family

When you find yourself in debt, there are various options available. The Citizens’ Advice Bureau, along with several associations, offer free advice and this can help you negotiate with creditors. Other options available are short-term loans, payday loans, along with paying the debt with your credit card. The easiest way of paying a debt might be to borrow funds from the family. This, however, is not always a great idea.

There are reasons for and against borrowing money from family. From the debtor’s point of view, it is an easy, interest free loan, usually with no specific payment date. It’s also a very flexible loan. However, it can be easy for advantage to be taken of the family member who has, in good faith, lent the money. He/she can be left wondering when payment will be received and becoming aggrieved when the money isn’t returned in a reasonable time frame. Grievances which last many years can happen in families when debts haven’t be re-paid as originally promised.

If you find yourself in debt, the best option is to deal with the problem yourself. If you can cut back on monthly expenditure, reducing your mobile phone costs, utilities, Sky TV subscriptions, do so wherever possible. Advise your creditor, or creditors, that you are experiencing problems at the earliest possible time and they will be able help as much possible. Some banks will allow you to take ‘mortgage payment holidays’ to help over a difficult period, until back on your feet.

If you take action as soon as you find yourself in debt and proceed to act responsibly, there are steps available to help you over this period. While lending money from family can help at this time, it’s important to re-pay to debt as soon as humanly possible.