It is a given that we always have our families’ best interests at heart. If someone is in need of financial assistance, we are often willing to extend it, which may not be the case when it comes to strangers in a similar situation. The flipside to this is that if we happen to be on the receiving end, we have to play by certain rules. Borrowing money from impersonal sources like banks or lending institutions is quite different from accepting money from a family member, as the latter situation can often lead to unpleasant consequences.
Even though accepting a loan or gift from a family member is the easiest way to get out of a financial jam, you may be better off refusing it and looking for other alternatives. Below listed are five scenarios where saying a polite no is the best option.
1.Be Certain – If you are not certain whether a family member is offering you money as a gift or a loan, do not accept. Often such situations can lead to misunderstandings, as the person who is offering to help will not usually lay out clear repayment terms while he is giving you the money. If you are not sure when he wants his money back, it is better to refuse that interest-free loan than get into a complicated situation.
2. Feel Comfortable – If the loan is being offered to you in a gentle effort to get you to “tow the line”, decline if you are not ready to do so. A relative may want you to do things his way, which he feels is best for you, but you may not necessarily think so. Accepting money from that family member will clearly lead to serious and highly avoidable problems.
3. Be Respectful – Unless you are absolutely certain that the family member can afford to part with that particular some of money do not accept the loan. Sometimes a relative will offer to help since you are family and he loves you, but by helping you, he could be putting himself in a financial crunch.
4.Are You Able To Repay – If repayment is going to be a problem for you, you should probably refuse the money in the first place. If it is a gift then it will not be an issue; but if the money is being offered as a loan, accept only if you are certain that you will be able to repay it.
5. Avoid the Headache - If there is even the smallest inkling of a potential complication, refuse the money. Unlike bankers or other impersonal sources, you will be seeing your relatives regularly at family events and things can get pretty stressful if accepting that loan leads to future complications.
Of course there are many situations when accepting money from a family member is no big deal. The problems usually arise when the sums of money involved are large. If you absolutely must turn to a family member for financial help, make sure the repayment terms are openly discussed. It may be a bit strange to do so, but you will be spared a whole lot of anxiety and embarrassment in the long run.
