With the rise in prices in general due to the economic crisis that is affecting a large part of countries around the world they have many households “juggling” with their finances people. This despite the fact that inflation granted a slight respite this August by not increasing at a rate as high as in previous months, there are still great consequences of all this crisis. But despite this, is it a good option to ask your family and friends money?
According to experts from the financial comparator Helpmycash “we are in a cycle of much economic uncertainty that coincides. In addition, with a gradual tightening of the credit policies of financial entities. For many families with difficulties to reach the end of the month, ask for a loan from a friend or family member has become the road to get liquidity”. However, although going to this type of financing can be an advantage, experts say there are other “points” to take into account.
Advantages and disadvantages of asking for family or friends a loan
One of the advantages of this type of loans is that the request of this will always be subjective where the probability of loan is greater if the person we resort is close to us. Something that also translates that interest in the loan is lower than we could get with a financial entity.
Another advantage of this is that you can directly negotiate the loan return conditions. Also having a greater margin of permissiveness by the lender. In general, “if the payment calendar of the quotas established between the parties is not met. It will be easier to agree on a possible extension of the deadline for paying off the debt to a relative or friend than with the bank or financial,” said HelpmyCash experts.
Although this type of loans also brings some inconveniences. The first of these is that the relationship that unites the people involved in the loan can be affected by the breach of the debt. In addition, this excess permissiveness makes this more likely to happen, since although there are certain guarantees. These are not so strong so they can be easily broken.
In addition to this, certain problems with the Treasury can also be generated, since if a financing contract between individuals is not formalized. So that the regulatory entity does not see this financing as a covert donation, it is essential to record a loan. This with the relevant documents where the loan conditions are reflected, from the amount, the interest, the return mode, among others.