Everyone has friends and family who sometimes apply for a small loan. Higher amounts can cause inconvenience to all concerned. What do financial experts advise in such cases?
Why does someone ask us for money?
Looking at the payday loans market, we see that almost everyone now has access to bank loans or similar services from financial services providers.
Anyone who does not take out a loan or is in dire straits – if they can’t afford the interest – or is already on the ‘blacklist’, for example because they have a lot of messy credit. There are people who are pumping ‘lifestyle’ stuff – you might also be familiar with the works of Frigyes Karinthy – who basically maintain themselves from this activity, which, of course, repayment does not fit into.
Are you sure we want to give them our money? Are you sure this will be good for us?
Can we afford to lose that much money?
According to experts, giving a private loan is a very risky investment – if there is no interest rate, it will be profitable.
How much money would we put into such a bad investment anyway, like $ 3 million or ‘only’ 150,000? Would we take it out the window?
It helps to make a decision when it comes to credit appraisal: Like banks, ask the other party what they are spending, how much and how they will give their money. Maybe she needs the money to pay off her loan? According to these, he cannot – or does – want to control and handle material things.
How can we ever be more likely to get the money?
If you do lend, one of the most important things is to set a repayment deadline. This does not happen, which is almost a guarantee that the other party will delay the granting of the loan.
For example, if you gave a serious sum to start a business, you might plan to pay back when you ‘hit the business’ and get rich. This is not worth waiting for: select a deadline or schedule by period.
Is it worth borrowing on an emotional basis?
No, it is not worth borrowing on an emotional basis. Let’s give a donation then and tell us not to ask. This saves you stress.
But can’t we see our money?
In this case, keep in touch with the other party, call them, sit down to talk to them. Strictly but not threateningly, ‘let’s be present’. Even if you can’t pay, let’s not forget. Are you offended by us? He probably won’t pick us out anymore.
And most of all, next time, don’t give credit to anyone. All applicants are advised to apply for very favorable payday loans now.