If you are borrowing money from a friend or relative, it is important to take care certain things to keep the relationship healthy thereafter. Below are some suggestions what to consider amid such circumstances:
– The first and foremost suggestion is to set a realistic timeline for paying back the borrowed money. Don’t commit you will pay too early like within few days or in a week. However, you should consider paying back to the earliest as the other person too may need the money.
– Once you have committed a timeline, make every effort to pay the money on time. Prioritize paying back on time against your other expenses or obligations.
– If possible, offer to pay an interest for the borrowed money. The person may say ‘No’ to it but it should be in your nature to compensate. Agree on a realistic interest rate similar to what banks offer.
– Have a written agreement as money matters should be kept formal. A simple note will do and this will help in remembering when the money was borrowed. It will also work as a reference if question arises afterwards.
– Don’t skip regular communication. Keep in touch with the debtor as it will offer a peace of mind. He or she will not think you have disappeared after borrowing the money.
– Inform the debtor in advance if you are unable to pay the money on time as he or she can make adjustments to expenses.