How to Ask to Borrow Money From Family or a Friend

Since the recession in the economy, things have become tough financially for most people and it seems we are having trouble paying bills and expenses like we could before. It may seem as if you have no other choice but to ask to borrow money from someone you trust. This can be a difficult task since excepting you need help can be a humbling experience. But, there are ways to ask to borrow money from family or a friend that you know can help and still keep your pride. Here are some tips for asking for money when hardships arise and you have no other options.

Instructions

1. Talk to a family member or friend about why you need money. Make a plan before you ask to borrow money from a friend or family member. Be sure you have a good and valid reason for needing the money so that it's understood you are in financial trouble. When someone understands why you need to borrow money, it's easier for them to make a decision to give you the money. If you are behind on your bills, say so. If you need to borrow money for school, explain this as well. Everyone, at one point or another, has been in a financial bind and understands what it is like to be broke. Explaining, clearly, why you need to borrow money can help a friend or family member make a better decision to give you the money.

2. Have a plan about how much money you need to borrow. Explain exactly how much money you need to pay expenses, cover school needs, or buy groceries and household needs. Whatever you need the money for, be sure you know exactly how much money you have to borrow. When you are able to give an exact amount to your friend or family member, it gives them a better picture of how much they can come up with to help. If you need the money for more than one expense, make sure you explain how much each expense will cost. A friend or family member who is deciding to let you borrow money will feel more at ease if they know a total amount you need to borrow.

3. Make a plan for how you'll pay the borrowed money back. When asking to borrow money from a family member or friend, it's important to know how you will pay the money back to them. You should have a plan and let your friend or family know this plan. In order for your family or friend to make a decision to lend you money, they'll need to know a pay back plan. If you can pay them back all at once, let them know this, and when you'll have the money. If you're only able to pay back the money borrowed in installments, let them know this too. Allowing your friend or family member to make an informed decision about allowing you to borrow money is best.

4. Make up a written contract with your friend or family. In order for both parties to feel safe in borrowing and accepting money, it's a good idea to have a written statement that both can keep a copy of. Be sure to put how much is being borrowed, what the money is for, and when it will be paid back. If the borrowed money is going to be paid back in installments, make an estimated weekly, biweekly, or monthly plan on the written contract and have both parties sign when each payment is received. Get a receipt for each payment to be sure you have record of the borrowed money you paid back and get a final receipt stating that the money is paid off when you have done this as well.

Tips & Warnings

• Borrowing money from family or a friend can sometimes be tricky...prevent any hard feelings by talking all things through and keeping record of the money borrowed...have a witness if possible to ease any trouble.

• Try not to borrow an outrageous amount, especially if you are not sure you can pay this money back...only borrow what you can afford to give back later.

• If a friend or family member is not able to give you the money, suggest (ask) that they help you with a personal loan...if your credit is bad and you cannot get a personal loan on your own for the money, a family member or friend may be able to cosign or get the loan for you...BUT be absolutely sure you can pay back this loan and keep a written record of any payments you make.