Borrowing money from family and friends can be one of the most effective ways to borrow – and will often come with very loose terms for repayment and maybe zero percent interest.
But borrowing from loved ones can easily become uncomfortable and there are some important steps to take to avoid conflict and confrontation including:
- Setting clear repayment terms
- Managing expectations of repayment
- Being transparent about the reasons for borrowing
- Having a contract or formal arrangement in place