The Great Financial Debate: How can Friends and Family help your Plight?

Finance

Ah, money troubles; arguably one of the few lifestyle factors that binds us all, regardless of social background or status. While the troubles in question may be relative and unique to each individual, we all experience situations where we struggle to balance saving with the cost of everyday living.

The latter point is particularly concerning, with only northern towns in the UK such as Blackburn reported to offer value to residents. Coping with the rising cost of living (which continues to increase exponentially and disproportionately to earnings in Britain) can be difficult, with many forced to live hand-to-mouth on a recurring, monthly basis.

How can Friends and Family help you with the Cost of Living?

In these instances, it can be difficult to know where to turn as an individual. After all, the payday loan sector has been much maligned in recent times, while less controversial alternatives such as Credit Union loans and others lack the presence to empower borrowers in making an informed decision. This is where friends and family can come into play, however, as they have the potential to provide unconditional support and financial assistance that comes without inflated interest rates.

The issue with this, however, is that most people are uncomfortable borrowing from family and loved ones. There is common sense behind this ethos, as while borrowing offers a chance to access low-cost loans it also places pressure on relationships and introduces an unwanted financial aspect to your friendship. If there are any subsequent issues and the money cannot be repaid as and when agreed, this can create tension and ultimately undermine even prosperous relationships.

Fortunately, there is a more balanced options available to potential borrowers. This is the option of guarantor loans, through which individuals borrow money from a traditional lender while asking a compliant friend or family members to sanction the agreement. While this creates some risk in that the associate in question must assume responsibility for the loan in the event that repayments are defaulted, it offers borrowers access to funds regardless of their credit history and at least means that money has not been taken directly from loved ones. Click here to find out more about guarantor loans and their precise function.

A Final Note

While no solution is perfect when it comes to borrowing money, there are some that offer more value than others. A guarantor loan provides a relevant case in point, and this is something that you should consider carefully before making a firm commitment. It may be a decision that helps you to strike the ideal balance between resolving financial issues and maintaining positive personal relationships.

 

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