When we are in need for some help it’s tempting to step to your family for some help. To be asking them for advice is fine and shows how comfortable you are with them to turn to them in time of need.
Receiving advice from someone you know doesn’t cost anything for both of you. However when it’s about money it’s different. Most likely the heaviest burden is on the person lending out the money. They are conflicted between the risk of not receiving their money back and asking interest to be sure to receive it back. While in most cases they is no 100% certainty of receiving it back. Unless you set up a contract and willing to act on it.
If you would ever consider trying to loan money from people you know, please don’t. Maybe there is no option for you left to borrow money. The best thing would still be to borrow from a professional, it may cost more but it wont influence your relationship with the people you love. There are a lot of ways to get through a difficult financial time. However if your friend or family is involved it makes it more difficult.
A good reputation is more valuable than money – Publilius Syrus
When friends allow you a loan without having to pay interest you have found an interesting way of saving yourself from high interest loans. However this would mean you are taking the profit they could have made and enjoying the fact that you only have to pay the lump sum back. It does seem like a financially smart decision. However you are slowly losing some of your good reputation. From now on they will be able to point back to the moment that they allowed you the no-interest loan.
The last thing to consider before asking your family for a loan is your relationship. Having a loan puts an extra level of stress on your relationship. You are paying a low amount of interest or none at all, which may give them a feeling of power over you. Pay of the money as fast as possible include the interest if it has been agreed on. If you haven’t agreed on paying any interest try and a bit in it to thank them for their help.
Never take it for granted to receive money even if it is for a short time. Money can do a lot of great things, but the lack of money can bring bad consequences.