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Should You Take Financial Help from Your Family?

Especially during tough times, our families become our biggest strength. You do things for your family you wouldn’t normally do for an outsider or a stranger. The members of a family might be willing to go to any extent to help each other out. However, things can get a bit complicated when you accept or borrow money from another member of your family. The rules here are in stark contrast to that when you borrow money from banks or other lending institutions. Problems might arise when you get a gift or a loan from someone inside your family. Often, refusing their generosity seems to be a better choice. Below are the five circumstances when you need to turn down their offer politely.

Refuse the Money If You Are Not Sure Whether It’s a Gift or a Loan

Monetary help from a family member can bring complications in many ways. Owing to the way the members of a particular family interact within themselves, a relative taking a loan might not want to discuss anything related to repayment or interest to refrain from bothering the borrower. But the majority of people would need the money back. You should avoid creating any misunderstanding within the family since that should be of more significance than receiving a loan devoid of any interest.

Refuse Financial Help If You Are Attached to the Lender

Everyone in your family would want you to succeed in life. However, some might have an intention to go that extra mile and seek the best for you. But what’s best for them might not be the best for you. Often, someone might want to extend financial help intending to make you follow their suggestion and the path that they would show you. This might be a ‘strategy’ on their part. Even if you return the money as soon as possible, you wouldn’t be able to untie the strings for years. It’s up to you to decide if you want this obligation to exist.

Should You Seek Monetary Help If Your Relative Is Not Economically Sound?

Family members tend to do a lot of things out of sheer love and affection and can sometimes go overboard. They might want to help you financially, in spite of them being not financially stable or going through a rough financial phase. You surely wouldn’t want your relative to be in deteriorating financial condition, would you? It’s often tough to correctly analyze a situation and, consequently, unearth the truth of the matter. Therefore, be sure that that you wouldn’t harm your relative’s financial prospects if you are taking money from them. When it comes to family, things can get a bit sensitive. And the last thing you want is relative suffering because they lent you money.

Don’t Accept Money If You Cannot Repay

Your family members might offer money to each other as a gift. However, make sure that if money is a loan and there exists an option of repayment. Aside from that, you need to be aware of your financial condition and find out whether you would be able to return the money if and when required. If situations change at your place, it is always advisable to make yourself capable enough so that you can return the money in cash or help out anyone in need.

Refuse Financial Help If You Want to Avoid Embarrassment

In case you are borrowing money from a bank or financial institution, you and your lender cannot see each other. However, chances are there that you will meet your relatives at birthday parties, wedding events, and during holidays. If you want to avoid embarrassment in the later stages, you should get financial help from someone who doesn’t belong to your family. Dealing in money matters can be a regular fixture in your family, but keep in mind that you can’t compare your family with dollar signs.

If you genuinely need monetary help, you need to ensure that you and your lender realize the exact terms of the loan and the process through which the money will be repaid. Clear out everything at the very start. That wouldn’t break your bonding. Instead, it would help you guys prevent any tension that might arise in the future.

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