Borrowing money from your family members or friends can be a risky venture. Although this option seems better than going to a bank or financial institution for a loan, it can sometimes lead to tension between you and your family or friends.
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Decide if you need the money bad enough to risk the loan coming between you and your family or friends. If you are trying to buy a luxury item such as a piece of jewelry, saving your own money until you can afford the item may be a better option.
Figure out how much money you need. Take into account all of the expenses you need to cover with the loan.
Prepare a budget to make sure that you can afford regular payments to repay the loan. It is important to do this before you try to get the loan so that you know exactly how much you can afford to pay on a regular basis to repay the loan.
Determine what family member or friend to ask for the money. If you need a larger amount, you may have to ask more than one person for a loan.
Gather financial information including any documents that show your income and expenses. Your family member or friends may want to see proof that you can repay the loan in a timely manner.
Ask for the money. Be prepared to have to explain exactly what you will do with the money. Having something that shows where the money will go may help your family member or friend to feel more comfortable lending you the money.
Make a repayment schedule with your family member or friend and follow it exactly. Keep in mind that she loaned you her hard earned money and you need to give it back on time. Paying it off early, if possible, is a very good idea.