Seeking Financial Help from Family and Friends? Follow These Tips

Seeking Financial Help

Many people try all the harder to keep the wolf from the door. However, it is not likely to have your life the way you want. No one can escape financial problems, but a few of you know the right way to get over it. Some people strategically put aside money for a rainy day, but some rely on taking out loans.

A financial emergency can come up anytime and disturb your finances brutally. You are able to manage your regular expenses as long as you have a full-time job. Even though your monthly remuneration is not good, you will not be worse off. What if you are out of work? Or what if you stumble across a big expense? You will want financial help.

You turn to prominent direct lenders to take out the loans. Though you get the loan at competitive interest rates, paying off can be expensive due to lack of affordability. You not only have to pay the principal but also the interest. Managing repayments can be challenging if you have already run out of money. A loan is an ideal option but it is not the only option.

First off, you should consider better and cheaper alternatives like asking family and friends for financial assistance. You do not have to pay the interest. Secondly, you do not need to get into the formalities of submitting documents like income statement and so on.

For many people, it is obnoxious to seek help from family and friends. They think it like begging. This is why most of them end up relying on short-term loans. There is nothing wrong if you ask for help from your friends and family. If you request politely and you demonstrate your repayment plan, you will find your friends will be glad to help you. Here is how you should ask for monetary help:

Determine your needs

When it comes to taking help from your friends or family, you must know your need. It is important that you do not borrow more than you need. It builds trust among them. Your first job is to find out the credit need and why you need it. Try to cut down on your expenses to adjust your budget and use that money for your own cause. This will help you borrow a small amount of money that your friends will not hesitate to lend you.

Explain your efforts

Your friends or family will be more looking forward to helping you if you tell them what attempts you have made to get over it that have gone unsuccessful. If you need a small amount of money, you may take out text loans. If you prove that you have failed to get the loan or it seems to be extremely expensive, chances are more likely of the guaranteed loans for unemployed. Always remember that no one will help you if you do not help yourself. No one appreciates scrounging. You will have to show what efforts you have made to land a new job if you need money out of unemployment.

Develop a repayment plan

A repayment plan is a must to make your friend believe that you need funds genuinely and you will pay it off. Mention the reason and the specific period for borrowing money. Be realistic about your needs. You can also have a written loan agreement to make sure that both parties are on the same page. Make a list of your monthly outgoings to know how much you have got after paying them. Even if you are left with a few pounds, you will have a clear picture of your repayment amount.

Build emergency funds

While taking out a loan or borrowing money from friends or family are preferable options, you must build an emergency cushion to meet unforeseen expenses. The chances of getting funds from friends are tentative. You are likely to have been denied. Direct lenders may also turn down your application in case of high default risk, but emergency funds will immediately support you financially as and when an unexpected expenditure occurs. Ideally, it must be three months worth of your salary so that you can cover a big expense too.

Learn the concept of ‘FinTech’

The financial marketplace has turned up to the financial technology marketplace. Did you know that? Probably, no. For the last couple of years, the concept of FinTech has seen a massive development but unfortunately, many people are still not able to make the use of it. It is such a thing that will allow you to not to approach friends or family members for having some funds. Instead, you can apply for the loans through online technology and get the desired money on the same day of the application submitted.

Thus, applying for the external funding sources has become easier and so does solving the financial emergencies. Especially for the financial emergency, you should go for this option and continue the flow of funds despite having not a favourable financial environment in the current days.

You may get support from your friends and family if you convince them that you will repay the money. However, you should set aside money for a rainy day. Create a budget and whittle don expenses to save a large chunk of money. Once you are able to do that, achieving the target of financial contentment is not far away from you and of course, your communication with your near and dear ones will remain much improved.

Description: Are you looking to borrow money from your friends and family? This blog discusses useful tips on how you should see financial assistance from them.

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