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By: MJ Gonzales | Executive Chronicles
Burning bridges is a no-no in any professional relationship. This is unless there’s no point in keeping the connection and the person involved is ready for the consequences. This is not going to be easy when the dispute happen inside the family. There’s special bond and beloved relatives to consider, once the misunderstanding become severe. Here are ways to prevent worst case scenarios in terms of borrowing money from your relatives:
Have a paper trail. Since it feels awkward to have a written agreement, at least create data sheet that you and your lender have duplicate copies. This is ideal if you borrow huge amount that you promise to pay in installment. It’s will serve as a reminder for both you about how much the original debt, your agreed payment schedule or dates when you’re going pay, and the exact amount of money you give already. With this paper trail, you save yourself from the arguments about your payment history.
Offer to pay with interest. Getting loan from your family is better than borrowing financial firms because most likely they will not impose payment interest. Thus why you’ll initiate to offer paying your debt with interest? Of course, your proposal should not similar with banks’ rule. You just add a little bit of extra fee as a token for helping you. Besides that, your lenders may get their money from using credit cards. If that’s the case you’re also putting them at risk. Consider also that instead of using the money for their investments, they use it to help you.
Be transparent and update. Of course, the ideal step you do is to pay the full amount of your debt on time. In the case that you can’t pay due to some acceptable reasons, at least share your side with your lenders. Whether they’re generous and you’re close, don’t conclude that they understand you automatically. Give update to appease them that you will pay. It will also give them a warning in case they’re planning to use the money you borrow so soon.
