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How to Borrow Money from Friends or Relatives (Without Ruining Your Relationships)

How to Borrow Money from Friends or Relatives (Without Ruining Your Relationships)

In the words of William Shakespeare, “Neither a borrower nor a lender be.” The problem with borrowing or lending money is that it poses a serious threat to your relationships. Borrowing money from family and or friends is especially risky because it puts you in an awkward situation and can easily taint a perfectly good relationship. For example, being in debt to your mother or best friend can lead to feelings of guilt and associated problems when you realize you can’t pay back your debt on time–or at all.

If you care about your relationships, you will try to avoid borrowing money completely. Even if you are able to pay back the money you owe in full and on time, it still can change the nature of your relationship forever. That being said, asking for money from someone you care about is often the surest refuge out of a difficult financial fix. If you must borrow money from family or friends, do it as the very last resort and only for temporary financial shortfalls.

Here are some basic guidelines to help you borrow money from friends or relatives safely without ruining your relationships:

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1. Be honest about your financial situation

Personal finance is a topic that most of us would rather not discuss. But, if you are asking for financial help, it is necessary to show some level of humility and a willingness to be honest about your financial condition. This is necessary because your lenders will want to know how you will use money they give you.

Don’t paint an eternally rosy picture of your financial condition when it is not all that rosy. Explain all the risks involved honestly so your friend fully understands what she is getting into from the outset. Being transparent will also create room for her to be honest too and give you genuine advice.

2. Borrow only for essential stuff

Never borrow money to obtain non-essential things like a new smartphone or to invest in volatile markets like the stocks. Borrowing money to obtain unnecessary stuff is not prudent at all. Your brother-in-law will also not be amused if you ask a significant sum from him and blow it all in a single event, such as a party.

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Ask for a loan from relatives to address real emergencies, such as hospitalizations. If you must borrow to invest, invest in solid things that appreciate steadily like an education or a house. Just be prudent about how you use your loan and make sure your friend or family member invests a comfortable amount, in case things go sour.

3. Put it on paper

Treat loans from family members and close friends just like you would treat any other loan. Put your loan on paper and document the loan terms, principal, interest rate, and repayment frequency. This helps to minimize risk of a misunderstanding in the future and ensures your friend is clear on when to expect repayments and when the loan should be fully settled.

Also, record any provisions for repayment extensions or reliefs in case you are unable to repay your loan as agreed upon. Of course, you can do away with this formality especially where the loan is only a small amount. But, it’s recommended you insist on documenting the loan just to be on the safe side.

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4. Pay up on time

This goes without saying. Once you agree on the loan repayment terms, be professional and stick to them. Pay your loan on time without making excuses. Remember that a personal relationship you turned into a business relationship is at stake here and not just another random relationship.

If your financial situation improves before the loan repayment period lapses, pay off the loan early. This will be a pleasant surprise to your friend or family member and may help you win back some of the “points” you lost by taking the loan in the first place.

5. Maintain communication

If you are struggling with your repayments, don’t run or start hiding from your lender. Hiding gives a bad impression that you don’t intend to repay the money you owe. Maintain communication throughout the life of the loan and be honest and sincere about your situation. Being honest might take away more “points” from you, but it at least allows you to keep some of your honor.

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Resist the urge to get agitated when your friend or relative starts to nag or hound you to pay up. Put yourself in his shoes and imagine how you would feel if you were the one on the other side. You would likely also remind him constantly to pay up. Take it in stride and pay some amount back even if it is only a fraction of what you owe to demonstrate sincerity and ease the tension.

6. Return the favor

Life has a way of turning things on their heads. In time, you may find the friend or relative who helped you out of your financial fix is in need of help themselves. Return the favor extended to you by offering yourself and your resources to help them out. Do this even if you repaid your debt with interest or had incidents when your relationship was strained by the loan. Showing this kindness to others is a mark of maturity and reflects well the favor paid to you—and it was a favor!

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David K. William

David is a publisher and entrepreneur who tries to help professionals grow their business and careers, and gives advice for entrepreneurs.

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Last Updated on June 24, 2019

Why Social Media Might Be Causing Depression

Why Social Media Might Be Causing Depression

A study [1] published in Depression and Anxiety found that social media users are more likely to be depressed. This was just one of the huge number of studies linking social media and depression[2] . But why exactly do platforms like Facebook and Instagram make people so unhappy? Well, we don’t know yet for sure, but there are some explanations.

Social Media Could Lead to Depression

Depression is a serious medical condition that affects how you think, feel, and behave. Social media may lead to depression in predisposed individuals or make existing symptoms of depression[3] worse explains[4] the study above’s senior author Dr. Brian Primack. So, the problem may not be in social media per se, but how we use it.

Signs You’re Suffering From “Social Media Depression”

If you feel like social media is having a negative impact on your mood, then you may be suffering from “social media depression.” Look for symptoms like:

• low self-esteem,

• negative self-talk,

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• a low mood,

• irritability,

• a lack of interest in activities once enjoyed,

• and social withdrawal.

If you’ve had these symptoms for more than two weeks and if this is how you feel most of the time, then you are likely depressed. Although “social media depression “is not a term recognized in the medical setting, social media depression seems to be a real phenomenon affecting around 50% of social media users. As explained in a review study[5] published in Cyberpsychology, Behavior, and Social Networking, if a person has a certain predisposition to depression and other mental disorders, social media use may only worsen their mental health.

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Social Media Could Crush Self-Esteem

We know that social media and depression are in some way linked, but why is this so? Well, according to Igor Pantic, MD, Ph.D.[6], social media use skews your perception about other people’s lives and traits. To explain this further, most people like to portray an idealized image of their lives, personal traits, and appearance on sites like Facebook and Instagram. If you confuse this idealized image with reality, you may be under the false impression that everyone is better than you which can crush your self-esteem and lead to depression. This is especially true for teens and young adults who are more likely to compare themselves to others. If you already suffer from low self-esteem, the illusion that everyone has it better off than you will just make you feel worse.

Causing Social Isolation and Other Negative Emotions

Another commonly cited reason for the negative impact of social media on mental health is its link with social isolation. Depressed people are more likely to isolate themselves socially and chose only to interact indirectly through social media platforms. But communication online tends to be superficial and is lacking when compared to real-life interaction explains Panic. What this means is not that social media leads to isolation but the other way around, possibly explaining why we find so many depressed persons on these sites.

Lastly, social media use may generate negative emotions in you like envy, jealousy, dislike, loneliness, and many others and this may worsen your depressive symptoms.

Why We Need to Take This Seriously

Both depression and social media use are on the rise according to epidemiological studies. Since each one has an impact on the other, we have to start thinking of healthier ways to use social media. Teens and young adults are especially vulnerable to the negative impact of social media on mental health.

Advice on Social Media Use

Although these findings did not provide any cause-effect explanation regarding Facebook and depression[7], they still do prove that social media use may not be a good way to handle depression. For this reason, the leading authors of these studies gave some suggestions as to how clinicians and people can make use of such findings.

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One suggestion is that clinicians should ask patients about their social media habits. Then they can advise them on how to change their outlook on social media use or even suggest limiting their time spent on social media.

Some social media users may also exhibit addictive behavior; they may spend too much time due to compulsive urges. Any compulsive behavior is bound to lead to feelings of guilt which can worsen depressive symptoms.

Having Unhealthy Relationship with Social Media

If you feel like your relationship with social media is unhealthy, then consider the advice on healthy social media use provided by psychology experts from Links Psychology[8]:

Avoid negative social comparison – always keep in mind that how people portray themselves and their lives on social media is not a realistic picture, but rather an idealized one. Also, avoid comparing yourself to others because this behavior can lead to negative self-talk.

Remember that social media is not a replacement for real life – Social media is great for staying in touch and having fun, but it should never replace real-world interactions.

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Avoid releasing personal information – For your safety and privacy, make sure to be careful with what you post online.

Report users who bully and harass you – It’s easy to be a bully in the anonymous and distant world of social media. Don’t take such offense personally and report those who abuse social media to harass others.

The bits of advice listed above can help you establish a healthy relationship with social media. Always keep these things in mind to avoid losing an objective perspective of what social media is and how it is different from real life. If you are currently suffering from depression, talk to your doctor about what is bothering you so that you can get the treatment you need to get better. Tell your doctor about your social media use and see if they could give you some advice on this topic.

Reference

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