The golden rule of loans is to borrow only what you need. No matter what type of loan you need or what you are borrowing money for, you need to always try to keep it as low as possible. The more money you borrow, the more it will cost you.
Make sure you are really positive that you need to borrow as much as you are. Make sure that you can not get a better deal or possibly fund your purchase in part through some other method.
Borrowing only what you need helps you to remember that you are going to have to pay it back, so you want to borrow for a purpose. Never borrow just to borrow. Some people do that and that can cause a lot of trouble.
Borrow only what you need and you should be fine when it comes to paying it back.
Everyone has had the situation pop up where a friends or family member has asked to borrow money. This is always a tricky situation. It is often a situation where you feel obligated to loan them money without considering the risk.
It is your money, though, and you do not have to loan it to anyone. Loaning money to friends or family is actually quite risky. They have a lot of power over you and this can lead to you never getting repaid.
Of you only lent them $20 or $30 then not getting it back may not be that big of a deal, but if you loan larger amounts of money it could be a problem when they do not pay.
Loaning money to friends or family is something you should really consider carefully. Do not simply assume they will pay you back. If you loan a large amount then make sure you know when it will be paid back. You have to state the terms of the loan clearly so they understand it is not a gift, but an actual loan that must be paid back.
You can not be too worried about your friend or family member’s feelings that you do not look out for yourself. People lose money al the time to bad loan deals they make to people they think they can trust.