Guidelines for securely lending money to family and friends

In today's world no one, no matter how money is viewed by humans, can deny its importance in daily life. The situation becomes a little too difficult when money disturbs our relationships. We were all at one point in our lives at one end of the Borrowers' Association.

Indonesia Small amount of money, when asked, is not a big problem. The real challenge, however, is when the amount in question is slightly higher. As in almost all of Asia, family ties in Indonesia are very important in the social structure. The topic of money is also considered a very private and incomprehensible topic. Therefore lending or loaning to or from relatives is a real challenge.

If you are on the loan page:

Here are a few basic points that you need to carefully bite into your head before lending them as soon as a person asks you for money

However, dealing with money issues is easy if a few important points are considered. Here are some common tactics for dealing with financial matters.

See if you can afford the amount you asked for. This means that you weigh all your odds against borrowing money. If a smaller amount is requested, this is not as big a problem as a larger amount. If you are struggling with your personal finances, it makes no sense to help someone. Because in the end, you may be sorry to lend someone a high amount and thereby get into financial difficulties.

- Check what exactly is your relationship with the person who asks you for money? For example, if someone is someone who has previously asked for money and has timely paid, you can choose to play the Good Samaritan and give the required amount.
- Consider the disadvantage of lending. Suppose the borrower does not pay on time. Or the fact that you do not know for what purpose this money is used. If the answers to these questions do not affect your finances, you can borrow the requested money.
- Set your credit terms as the date on which you want the money back. An occasional text or e-mail is also useful for determining the amount you borrow and the period you borrow.
- It is not unpleasant for you to request the borrowed amount if the borrower does not fulfill his payment obligations in time.

If you are on the loan page:

Here are some things you should consider when borrowing money from a good friend or member of your family.

-The formal channels of borrowing such as bank loans, etc., before you ask a friend or relative for money. This would keep you in a more comfortable position in terms of questions and repayments. Only when there is no other possibility, a person should demand money from a loved one
- Do not ask several times to ask more money from a single lender just because he / she is too kind to lend it to you each time
-Check your financial status. If it is too often that you are at the end of the loan, you must take steps to improve your finances.
- Let the lender know if you believe you can not repay the loaned amount well within the expected time
What if things go bad?

This can happen if a person can not repay the borrowed amount even though they have been asked several times. Since a friend or relative is the borrower, you can freely talk to him about the crisis that is preventing the money from being returned, and you can even discuss possible failures. In any case, if the amount is large enough, as a last resort, you must even go the legal route to take possession of your borrowed money.

In short, credit and loans are a tricky business, of course. However, if you take some care, it may even lead to more trustworthy and better relationships with your loved ones.