When facing financial difficulties, there are many options to consider such as taking out a debt consolidation loan from the likes of Avant Credit or borrowing money from friends and relatives. While the former could be a sensible move leading to debt being paid off promptly, the latter could cause long-term problems and even relationship breakdowns – so let’s look closer at this issue.
Negative effect on personal relationships
If you are short of money, it can be tempting to rely on your nearest and dearest to bail you out – especially your spouse – but this isn’t always the best solution. According to the charity StepChange Debt, nearly one third (31 per cent) of the 1,000 people surveyed who were in financial difficulties, reported problems with a partner as a result of their money issues. To make matters worse, of those who reported negative effects, one in 20 (or five per cent) split up with their partner as a direct result of lending and borrowing.
Negative effect on friendships
Survey results from StepChange Debt also revealed how borrowing money from friends can also be a stressful and tedious experience with 16 per cent of respondents reporting issues and three per cent admitting that friendships had broken down completely as a result of debt. This is clearly a great shame which is why many people turn to money-lending sources to help them get back on track financially – without having to worry about what people may think of them down the line.
Negative impact on family relationships
When people are in need they can feel tense, judged and argumentative. They may also be extremely defensive about their actions or be somewhat depressed which might explain why 16 per cent of people surveyed by the debt charity also said that financial difficulties had a negative impact on family relationships – with four per cent of these saying a friendship with a family member had broken down as a result.
Borrowing from relatives and friends not the answer?
If you’re worried about credit ratings or high interest rates, borrowing from people you know might seem like the easy way out, but actually it can lead to further troubles. What’s more, taking financial help may not solve the underlying reasons why debt occurred in the first place. For this reason, it’s really important for people who are in the red to seek financial advice and to find out the best ways to get back on the right track. Financial advisors have the know-how to guide you in the best direction and may recommend everything from avoiding credit cards to taking out a low-interest rate loan to help consolidate debt.
Money worries can be extremely unsettling. In fact, they can affect your mental wellbeing considerably, but if you find yourself in a tricky financial situation and are in need of help, always find out the options available rather than ask your family and friends to dig deep into their pockets.
For me, it’s more helpful if you borrow money from friends or family members. It’s just have to be made based on your judgment to whom you borrow money. But, if you think it’s better to ask advice from financial adviser, then do it. It is really what works out for you the best.
Kelly recently posted…3 Tips on How To Become A Successful Entrepreneur
I borrowed money from my parents for my closing costs on my house. I’m still paying it off, but so far it hasn’t had too much of an effect on our relationship.