This page will give you tips and suggestions on how to borrow money. Whether it's from friends, family, or secured or unsecured debt from a bank or other institution, you've come to the right place.
When you are thinking about taking on new debt, the first thing to consider is how much money you need. It always makes sense to ask for more than you actually need as lenders will sometimes offer you at least 10% less than the amount you were asking for.
Tips
Consider the pros and cons of your source, whether it's an international institution or your parents
Note: Beware of online lenders you've never heard of who don't provide details about who they are and where they are located. If you are told you have to pay hundreds or thousands of dollars in up front fees, it could be a scam. If a legitimate lender charges you fees, they can be taken out of or added to the loan amount.
Borrowing Money in Plain English
Borrowing money can be complicated. This video breaks the process down into easy, understandable steps and shows the process from the different perspectives of each person or entity involved in the transaction.
Borrowing from Friends and Family
Depending on your family situation and general connections, going to your friends or people you're related to for a loan may appear to be the easiest option. In addition, this type of loan my end up being interest-free! However, 'F&F' money comes with its own problems.
The first problem is that, if you're borrowing for a large consumer purchase or to start a business, friends and family may not thoroughly confirm the soundness of your idea before making the loan. Banks do. If borrowing is relatively easy for you, don't let that be a reason to skimp on planning.
The second problem can sometimes be related to the first, and that's what happens when things go bad and you can't pay the loan. If you receive unsecured money from an institution and your business goes bankrupt, the bank or credit union doesn't have recourse and simply moves on. However, money that's lost after coming from friends or family will likely lead to discomfort, resentment, hurt relationships and even lawsuits.
