Borrowing money can always be difficult for some people. It could be because they do not like borrowing or because they have difficulty borrowing due to their credit rating or struggle to repay it. There are many borrowing options but for those that have difficulties with it, those options might be limited. This means that there are some who might feel that they should turn to their parents for help with a loan. However, it is worth thinking this through well first.
Will it impact your relationship?
It is good to start by thinking about whether it might have an impact on your relationship with your parents. When they lend you money it could cause a difference between you that you have not experienced before. This could be for all sorts of reasons, but money can be quite a sensitive issue and can often be the source of arguments in relationships. If you have borrowed from them before and all was fine then should be more confident that it will work this time. You will also know what they are like and whether it is likely to have an impact or not. It is worth thinking about this though as you do not want to fall out with them as it could be something that you really regret in the future.
Will it cause jealousy?
It can also be wise to think about whether it will cause any jealousy. This could happen, particularly with siblings if they feel you are being treated better than them. Money can be something which siblings are often jealous of and if they think that you are getting special treatment because of you being lent the money, they might take it out on you. They may want a loan themselves and if there is nothing left for them, then they might feel really angry towards you because of that. It could have a big impact on your relationship with them. You might regret falling out with them over something like this. It could even be a situation that your relationship never recovers from.
Will it leave them short?
It is also a good idea to think about whether it will leave them short of money. You could feel extremely upset if you borrow money form them and then it means that they have to go without things as a result. If it means that they have to cancel holidays or not buy gifts or perhaps even be really frugal with everything that they buy then this might make you feel bad. It could therefore be a good idea to think hard about whether you know what their financial situation is and whether you think they will manage. It could be the case that they will want to do anything they can to help you and so even if they cannot really afford it they mat lend you money and then this could be problematic for them and this is not something that you would want to happen.
How will you repay?
It is also important to think about how you will repay the loan. With a normal loan you will have a repayment schedule and repay a certain amount a month and also pay interest and possibly other fees as well. You will need to think about whether you want to set up an arrangement like this between you. It might help you feel better at borrowing if you know that you have a plan for repaying. You also need to discuss with them how much they want to charge you for borrowing form them. They may not want to charge anything but you may feel that you want to at least compensate them for the loss of interest that they would otherwise have got if they had put the money in a savings account. It is important to discuss all of this before you borrow the money and then you will be less likely to get into disagreements about it in the future.
It is a big decision to make and therefore you should spend some time thinking about it yourself and then discussing it with them. It is a good idea not to just go forward with it without properly thinking about the consequences. Discuss with them what might happen if you cannot make repayments or they need money more quickly than you can repay it. Make sure that you have covered every eventuality and then you will be able to be confident that it is the right choice for you. It might even be wise to have other members of the family present, such as siblings, so that they can express any worries they have about the situation and then you can get all concerns out in the open before anything is formally agreed between you.