If you are in need of a loan, you may be considering asking a friend or family member for the cash. After all, if you have demonstrated that you are good at paying them back in the past, or if a friend owes you a favor, it might seem like a simpler solution than heading to a financial institution. When it comes to mixing friends with finances, however, borrowing from friends is often more a problem than a solution.
If you are thinking of asking a friend for a loan, you might be imagining that it is a simpler process than obtaining a bank loan. Asking friends for money is a very risky prospect, however, and it can become an unpleasant situation right from the moment you ask. Your friend might be experiencing financial difficulties that you don’t know about, for example, and will either have to explain something they wanted to keep private or risk lending you money that they can’t afford to give.
Read the rest of this article and more in the March edition of the Avidia Monthly.