5 Disadvantages Of Borrowing Money From Family
Nobody wants to bother to come to a relative or friend to borrow money. To save our faces and pride, we choose to apply for loans in financial institutions like a bank, an SG money lender or an individual moneylender. Yet, when we have a tight budget, we borrow from a relative or a friend instead.
Here are the disadvantages of borrowing money from friends and family:
- Risking Trust and Relationship
Money matters are a huge matter for everyone. Any trouble with the payment terms puts a toll on the trust and relationship. This unpleasant relationship history may last longer than you think. A legal money lender in Singapore puts their trust in your credit history.
- Control Over Spending
Our friends and relatives criticise and control how we should spend or use the cash we borrowed from them. Likewise, it could affect their relationship with them. The best money lender in Singapore will not meddle in your spending activities as long as you pay them within the payment terms.
- Verbal Contract
Most people who borrow money from a friend and relative enter a verbal contract-- or simply honouring words, promises, and trust. A verbal contract can be dangerous for the lender and borrower. A legal money lender in Singapore ensures a written contract and agreement between the lender and borrower for protection.
- Vague Payment Terms
Since there is no written contract, the lender could demand payment outside the payment terms without prior notice simply because they think they have the right to do so. On the other hand, the borrower could extend payment terms because they are still incapable of paying.
- Does Not Build Credit Score
Credit history does not record loans between families and friends. It won't help you get loans in the future, unlike borrowing money from the best money lender in Singapore.
Families and friends have our backs in times of need, but as much as possible, borrow money from a legal money lender in Singapore.
Apply Loan SG provides the best legal money lenders in Singapore. Visit Apply Loan SG today.
Resource:
https://visual.ly/community/Infographics/business/why-you-should-not-borrow-money-friend-or-family
