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Medical Bills • 3 minute read

Borrowing Money From Family: Tips On How To Have The Conversation

Borrowing Money From Family: Tips On How To Have The Conversation
By Mason Frenzel
Published by Ruby

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Sometimes things don’t work out the way you hope, but when one door closes, there is often another path leading toward your goals. If you are struggling to pay off medical bills and feel like you are running out of options, you might consider borrowing money from a family member or friend.

Borrowing from loved ones can lead to awkwardness and even tension so it is no wonder that people tend to use this option as a last resort, but when the process is handled the right way, it can be a welcomed opportunity for friends or family to assist you in a time of need. And on the flip side, your diligence in repaying the loan and communication throughout the process will demonstrate your gratitude for their help.

This article will give you valuable tips on how to borrow money in a way that benefits both parties, and most importantly, protects the strength of your relationships. Keep reading to learn more!

Tips to keep in mind.

Pretend that you are borrowing from the bank.

 

  • According to Forbes, when you make it clear that you are taking the situation seriously, your potential lender will too. Similarly to applying for a loan at the bank, it is a good idea to outline your financial situation and explain how you intend to use the loan to pay your medical bills. You should also include a timeline for repaying your loan, as well as an interest plan.

 

  • You might consider including this information in a slideshow or spreadsheet.

 

 

Document everything.

 

  • Recording every detail of your agreement and providing each party with a copy will decrease the likelihood of misunderstandings later.

 

  • Be sure to write down important logistics such as the timeline of your repayment, and the sum and date of each payment.

 

  • It also helps to develop a contingency plan. What happens if you fail to pay back the loan or are late on payments? Forbes recommends possibly implementing a late fee for tardy payments, or even giving the lender a prized possession to use as collateral.

 

 

Communicate.

 

  • If you know that you will be late on a payment or are struggling to repay the loan, it is better to have a difficult conversation with your lender rather than staying silent. When you are late on payments and they do not hear from you, this can lead to distrust and even resentment.

 

  • If you cannot comfortably repay the amount you borrow, you might reconsider if this is the right decision for you. When repaying your family member or friend creates financial strain, it is more likely that you will be late on payments, resulting in damage to the relationship.

 

  • Depending on your knowledge in terms of your family member or friend’s financial situation, it is important to think about how parting with this money, even temporarily, will affect them. They may overextend themselves out of concern for you and it is crucial this you take that into consideration.

 

 

Don’t over-borrow.

 

  • If you cannot comfortably repay the amount you borrow, you might reconsider if this is the right decision for you. When repaying your family member or friend creates financial strain, it is more likely that you will be late on payments, resulting in damage to the relationship.

 

  • Depending on your knowledge in terms of your family member or friend’s financial situation, it is important to think about how parting with this money, even temporarily, will affect them. They may overextend themselves out of concern for you and it is crucial this you take that into consideration.
Ruby.

When life gets out of hand, you need a support system to help in your time of need. Maybe you received a surprise medical bill in the mail, or an ongoing illness is causing you financial stress. Whatever the situation, Ruby is here to get you back on track. Ruby can work with you on developing a plan to pay off your medical bills, and even help you negotiate with healthcare providers to lower the amount you owe. Visit our website to learn more about how Ruby can help you!

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