The Rule Of Thumb For Borrowing from Friends or Family

Borrowing Money Form friends and Family

The general rule of thumb for borrowing from friends and family to reduce your debt is – don’t. You’re likely to get a much better deal from them than getting a loan from a bank or other lending institution, but the risk is personal and may mean inviting an eventual rift between the people involved. One reason you should never borrow from family or friends is that it’s so tempting to use the money for other purposes than paying off your debt. Going through a bank will ensure that you pay them and they will hound you if you don’t. …

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