Have you ever been so broke that you resorted to borrowing money from your friends? Especially when you were in university, and you were transitioning into adulthood and receiving an allowance by your parents became a thing of the past. I know I have. But I've been lucky to have good friends today who understand that money really isn't everything and hence my money-borrowing experiences haven't strayed too far from good.
But of course, I had to go through my fair share of bad experiences to get to where I am today with my walking ATM friends (I'm only joking), and trust me, if it's within your means to get your money elsewhere, I'd highly recommend it. If you've never had to borrow money from your friends, it's best to not start. Here are 4 reasons why it's better not to borrow money from your friends that we at GET.com have put together.
4 Reasons Why You Should Never Borrow Money From Friends
1. Your Friend Might Never Let It Go
If you're lucky enough to have never experienced this, good for you. But for some of us, the person that we asked to borrow money from was simply the wrong person to approach.
For example, there are some people out there who will start to feel like you, the borrower, is now indebted to them once they've lent you their money, even if you've already paid them back.
It's sort of like a power trip. As much as this person might be a good friend or a best friend, sometimes you just never know what a person will be like when it comes to money.
2.Trust Comes Into Question
Because borrowing money from a friend sometimes comes with no interest, as a borrower you'd tend to take your time returning the money because there was no set deadline in the first place.
But this is where your friend can start feeling iffy towards you, even if you're not coming from a place of malice. If you know for a fact that it's been a while since you borrowed the money, you could assure your friend that you will pay them back ASAP.
The problem always arises when the borrower sometimes takes advantage of the situation (even if it's subconscious) and then the trust between the friendship goes downhill from there.
3. It Can Get Really Awkward
When you're in dire need of cash, sometimes you're not able to gauge when you'll be able to pay back the money you've borrowed. I've been there before.
Sometimes it can be a case of not being able to pay by the agreed date because of unforeseen circumstances, like a medical emergency that needed your financial attention for example.
This is where things will start to get awkward, because now, you will have to tell your friend that you need to go back on your word, and extend the deadline. Even though your friend might be understanding towards you, it's still such an excruciatingly awkward position to be in.
4. You Might Put A Strain On The Friendship
Perhaps the biggest reason why you shouldn't borrow money from your friends is because you don't want to be the reason why your friendship falls apart.
Sometimes, our friends have a hard time drawing lines and setting boundaries of their own, so when they see you in need, it's hard for them to say no to you even though lending their money out isn't the best thing for them to do.
I know it can seem like a stretch, but over time this could lead to resentment towards you, especially if you continue to seek help from the same friend.
So, Don't Borrow Money At All?
At the end of the day, it really depends. If you have ride-or-die friends who are on the same wavelength as you, perhaps borrowing money from them might just be a better idea than going to alternatives like loan sharks or something that could really be damaging to your financial status.
But remember, it's still important to avoid being a toxic friend and only treat your friend like an ATM. If you have a significant other, maybe you might want to have a look at these 5 ways that money can ruin your relationship.
Of course the goal here is for you to be financially independent, and if you need help saving, these 5 easy ways to get yourself into money-saving mode might help.