Friends and Business

Can I Ask my Family for a Loan to Pay Off my Debts?
Debt has always had a degree of shame attached to it and admitting to having problems with debt is like saying you don’t know how to handle your own affairs. Some people may get into a situation where unless they get immediate financial help there is a possibility of losing their family home, or their business.
" Asking for financial help from family members is never an easy decision but sometimes it's the only option left..."

One option is to ask your family for help. Asking for financial help is always a tough decision, but sometimes it is the best option. In most cases a loan from the family would be interest free, but it is a good idea to add on interest or include something extra when the loan is repaid. Remember, that any money loaned to you from a family member would have earned interest for that person, so it is a good idea to recompense in some way equal to the interest lost.

The important thing is that if you borrow from your family they must be repaid. Put in place a plan that will enable repayment of that debt, plus interest if necessary, within a particular time. Don’t take the loan for granted and don’t at any time “use” your family. Any losses you cause to your family will bring about irreparable damage to the relationships, as well as financial losses to the members concerned.

Loans among Family Members
If you borrow money from a family member, one of the steps you should take to avoid trouble is to clearly document that the money has been received as a loan. You should also document that it is received with or without interest payable.

It is a good idea to document things because that family member or you could die and the details of the loan would be hard to put together. It doesn’t have to be a legal document, but it should clearly outline who is the lender and who is the borrower and the amounts concerned. It should also outline the interest payable and the repayments that have to be made, either monthly or quarterly.

The final thing it should contain is the date the loan should be repaid by. Make sure the document clearly establishes that it is not a gift, but that it is a loan. There are a few things that create problems within families and destroy relationships more than loans that are made and not repaid. Set out a plan for repayment and keep to it.

How to Deal with Useless Criticism
Some criticism is unconstructive. Try not to let this type of criticism bother you when you are faced with it.

Here are some steps to take:

  • Agree with the facts: Evaluate the criticism and the person presenting it and agree with them on the facts. Respond to them by answering only to what they actually say and not to what they imply.

  • Answer the criticism: Stay calm and collected throughout the conversation. Don’t lose your temper. The only way you will feel degraded is if you take the criticism personally. If you accept the criticism constructively, rather than personally, then you won't need to defend yourself, or attack the other person.

  • Accept your mistakes: If you have made a mistake, accept it. Everyone makes mistakes. Don’t feel guilty about it. If you are in error, apologise sincerely and take any actions necessary to remedy the situation.