Reading Time: less than 1 minute
If you’re experiencing financial difficulties, mounting debt or other money concerns, you may be tempted to turn to your family for help. It seems reasonable at first, and some family members may caution you against debt-relief programs and offer assistance.
It’s understandable. Your family has always been there to help and support you, and the offer of an unsecured loan to help pay off your debts is attractive. However, deciding to take this route paying off your debts can lead to more problems than you realize and let’s be real, no family member is doing cartwheels over the prospect of bailing you out.
Think about it, if you owe $28,000, get a loan for $28,000 and pay off the debt, don’t you still owe $28,000? Is there a gain here? Some may believe that simply a lower payment is better. In the end, It’s not.
Let’s take a moment to go over the hidden dangers of mixing family and money. We encourage you to read them over and consider these points when making the choice to receive financial help from your family rather than a debt negotiation service.
The Emotional Impact
Even though some family members may seem to want to help, they very well may come to feel unexpected resentment, especially if it takes you longer to pay them back than you had first anticipated. Let’s face it, making that first payment back to them may seem simple enough, but beyond that first month’s payment, it’s a long endless grind to make all the payments…on time!.
If your family member doesn’t have a lot of money to spare, lending out what little they have may affect their ability to do luxury activities. When they are confronted with their own limited financial abilities due to their loan, it’s difficult not to feel resentment.
You may experience your own emotions as well, ranging from embarrassment to shame. The negative impact this can have shouldn’t be discounted and may affect your ability to relate to your loved ones or concentrate on work. Likewise, if you have siblings, they may experience anger and resentment to you as well, and confront you over the loan.
The Legal Issues
Most family loans tend to be done without paperwork. While this saves the concern of contracts, it also leaves both parties open to legal considerations they may not be aware of. If payments are missed, neither party can prove that they’ve been made.
At best, this can lead to extreme family disagreements. At worst, you could end up in court with an unprovable case.
Why Debt Negotiation is Better
If you’re struggling with your finances, you should know that you aren’t alone. The Motley Fool published an article in February of 2018 that illustrated 80.9 percent of baby boomers, 79.9 percent of Generation X and 81.5 percent of Millenials all carry debt.
Obviously, debt is a big issue among all Americans, at any age. Debt negotiation services are here to help you manage your debt and formulate programs that will enable you to maintain your independence without the risk of harming your most important relationships.
With our services, you can consolidate your bills into lower monthly payments, while working to achieve a debt-free life on your own. This will allow a sense of control and self-confidence as you manage your debt independently.
Lastly, here’s perhaps the best idea if you can’t resist the temptation to borrow from relatives:
• Enroll in the debt negotiation program,
• Let the debt negotiation firm get your balances dramatically reduced
Result: You only need to borrow approximately half of what you owe vs. 100% from your relative.
This is substantial. This is real money.
Would you buy a new car for 100% if you could get 50% off?
The choice should be obvious and maybe your relatives will feel more confident, in you.