How Friends and Family Can Help During Your Financial Crisis

Sat, Jan 30, 2016

Financial Advice

Everyone has that one friend or family member who isn’t so great with money. Often it will be that they’ve spent too much on unnecessary items or aren’t able to go out at the end of the month until payday arrives.

However, sometimes financial problems can become serious. There are many reasons people end up with mounting debt or excessive repayments and as a good friend or relative you will want to help out. Be tactical if the subject is breached and if you feel the need to get involved then do so in a productive manner.    

Help Them Find Help

You may want to offer plenty of your own advice but unless you’re a financial expert it is probably best your friend hears it from a professional. Help them find a consultant or charity they can talk through their financial difficulties with and come to a resolution. The first stage is acknowledging such problems before they can be acted upon. Check online and go through listings together to find something suitable.  

Get Involved

Not everything you do has to be based around money to provide a helping hand. Simply aiding them with tasks such as cleaning out their house and garden will cut back on their expenses while providing more time for your friend to set their finances straight. If they have children or pets then offer to look after them for a bit so they can focus on filling out important paperwork, applying for jobs or other important activities.

Act As a Guarantor

If your friend or family member has a record of poor financial management, with a bad credit rating to boot, then acting as a guarantor so they can take out a loan from providers such as Trusttwo could be a lifesaver. You will need to be prepared to cover the costs if they can’t meet repayments but if you’re in a stable financial position this is a good option to take.

Lend Yourself

Lending money to those close to you can create all sorts of awkward situations and is a hard subject to discuss. However, in most cases it will be better for your friend or family member to borrow money from you interest free rather than from a bank. If you feel comfortable doing so and feel that it won’t damage your relationship, then create a written contract between the two of you with a designated repayment period.  

 

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