When it comes to money management, you would be surprised to find out how many people just suck at it, and those who don’t have a penchant for finances have to borrow money now and then.
Maybe you weren’t all that bad at managing your money. Maybe it just so happens that something came up and you were put in a tough spot.
Whatever the reason, you’ve found yourself in a moment of need, and you’re looking for some good excuses to borrow money from friends or family to help you get out of a financial hole.
Luckily, you’re in the right place. Here are 12 good excuses to borrow money from friends and family.
How to Increase Your Chance of Hearing “Yes”
Before we unload the excuses, here are some things you’ll need to consider so you can maximize your chance of hearing “Yes” from a potential lender.
Ask the right person
An ideal potential lender is someone who has a good job and seems to manage their money well, and is likely to have extra income because of it.
This person should not have had any money-related conflicts in the recent past, and they must be unlikely to turn litigious you if you need to re-negotiate your payments.
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Have a good reason
No one is going to just hand you money for silly reasons like going shopping or for a vacation. Your excuse must convince the lender that you are desperate and in need.
Be realistic and considerate about the loan amount
If you know your friend is not financially secure or if your family member is unemployed right now, do not request an exorbitant amount of cash. You are likely to hear a no, and you might even make your friend or family member feel bad about not being able to help.
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Have a payment plan in mind
The first thing your potential lender is going to think about is how and when you plan to repay the loan. You will need to establish a payment timeline and convince them that you will adhere to it.
Don’t get upset if you hear “No”
While getting denied can be very disappointing, especially if you desperately need the money, and they seem to be able to afford to lend it but choose not to, you can’t be upset over what someone else chooses to do with their money.
If you show that you are upset, that could ruin your chances with other potential lenders, and who knows, maybe this person will change their mind based on how you handle the rejection.
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Now that you know how to increase your chances of hearing “Yes,” here are 12 good excuses to borrow money that can be used with friends and family.
Borrowing money from friends can be a double-edged sword.
While repayment may be more flexible than a bank and you are more likely to get the loan, borrowing money from a friend can cause tension in your relationship.
Keep in mind the risks to your friendship that come with asking for money. If you decide your friendship can handle the risk, here are 7 good excuses to borrow money from your friends.
01Legal fees/income tax
If you buy a house and the legal fees on the purchase put you over your budget, or you run into a situation where you need to find legal representation, you might be looking to close friends to cover the unexpected costs.
Instead of taking a personal loan with ridiculous interest rates or putting the charge on a credit card that will only drag down your credit score, consider turning to a friend for some assistance.
This can only serve as a good excuse if you are transparent and honest about what the money is being used for.
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02Repairs
These can include both emergency home and car repairs. For instance, if there is an imminent hurricane and you don’t have the money to get the items you will need to batten down the hatches, or if the storm caused a section of your roof to be damaged, you have no choice but to shell out the cash to make the repairs.
These are good excuses to borrow money and are likely to make sense to your friends. The situations that lead to repairs are often out of your control, and you’ll genuinely need financial help to overcome these challenges.
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03Unexpected travel
You might find yourself having to take a trip you had not planned for if, for example, a family member becomes ill or passes away. When these kinds of things pop up, travel is usually significantly more expensive than a pre-planned trip.
Emergencies like these are good excuses to use because it’s clear that the money won’t be supporting your personal interest in lounging on beach chairs in the Bahamas or going skiing in Vermont.
Family emergencies demand your presence, and opting out of events like funerals and caring for loved ones can cause lifelong trauma and divisions among surviving family members.
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04Job loss
Getting laid off is not something you’d wish on your worst enemy, especially if you’ve got bills to be paid and people to take care of. With no income and dwindling savings, asking a friend for help may be your only option. Banks are unlikely to work with you when you’ve got no way to pay them back.
Job loss is one of the most common excuses to borrow money, and you are likely to find some success in asking your friends to help you in this difficult period because most people have experienced the difficulties that come with job loss, to some degree.
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05Moving to a new home
Anyone who has ever moved will tell you that the experience is not cheap, especially if you hire a moving company. If you’re moving into a new place and have no furniture of your own, the costs of outfitting the new flat with the essentials can really add up.
Taking a small loan from one of your friends to help cover moving costs can help you avoid generating large scale debt. Your friends are likely to work with you on funding these expenses because they know where the money is going, and they can be a part of the process in a hands-on way.
If you are a small business owner, you know that staying afloat in a volatile economy can get rough sometimes. After paying everyone else, there is often little to nothing left for yourself. If you’ve exhausted your formal financing options, asking a friend for a loan to help keep your company afloat during a recession is among the best excuses to borrow money.
Your friends are probably already rooting for your success and will want to help in any way they can. You’ll have even better luck securing a loan if you have a good business plan and a strategy laid out for recouping your costs.
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07Pay off a credit card
Carrying credit card debt can plummet your credit score and cripple you when you need to take out a loan. One of the easiest ways to improve and maintain your credit score is by paying off your credit cards on time. But sometimes life throws you curveballs and prevents you from paying your bills on time.
To help stop your rising credit card debt, you can borrow money from a friend and pledge to repay in a set timeframe. This way, you can avoid the consequences of missed payments and maintain a strong credit score.
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Excuses to Borrow Money from Family
While you have the option of borrowing money from friends and family in your time of need, you will probably find that closer family members will be more willing to help you when it comes to your finances. This group will likely have more patience and understanding regarding repayment, too.
Here are 5 excuses to borrow money from family.
08School
Your family members are probably already encouraging you to attend and excel in school. But we all know that attending school, especially college, is not a cheap endeavor. Working while attending classes can be difficult and, in many cases, impossible. Tuition alone is prohibitively expensive in many cases, but even just the basics like books, living expenses and transportation all add up.
Most college students who take out formal loans to cover the costs of their education will spend their lives attempting to pay off the debt. If you’ve got family that can afford to foot the bill, school is a very good excuse to borrow money.
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09Hospitalization
Anyone can fall ill at any time or have an accident that lands them in hospital. Without health insurance, hospital bills and medication can easily break the bank and put you into debt.
To avoid taking on high-interest debt during an already difficult time, you can opt to borrow money from your parents or other close family members who want to help you recover physically and financially.
Medical costs are one of the best excuses to borrow money because they are tied so closely with your personal well-being. In many cases, they literally represent a life or death need.
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10Taxes and bills
If you are young and have recently moved out on your own, things can get a bit rough in the first few months as you adjust to your new life without Mommy and Daddy’s help.
Bills like water, electricity, gas, data plans, internet, car payments, insurance, income tax bills, and any monthly subscriptions you have can pile up quickly, and before you know it, you could find yourself sinking.
Parents and older siblings can be very understanding on this front since they probably know what it’s like to have life come at you fast. Explaining your situation will probably get you some help in getting back on your feet.
This excuse works especially well if you have a good plan to avoid getting yourself in a situation like this in the future.
Weddings and funerals can be very expensive, especially if your family observes traditions that manifest in large ceremonies.
Everything from the decor to the catering to the venue rental and entertainment will burn through your budget quickly.
During these times that bring people together, it is highly likely that you will be communicating and meeting with family members to plan everything for the event. That gives you the perfect time to ask for money since your family member will see where their investment is going, and they can visualize the amount of financial stress that you’re under.
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12Buying a car
Depending on where you live, owning a car can be a requirement for a basic, functioning lifestyle. But buying a car isn’t exactly cheap, and taking out a car loan can put you in debt for quite some time. A great way to avoid these high-interest rate traps is to borrow enough money from family to purchase your vehicle.
This is a very common reason people take out loans and is one of the best excuses to borrow money from family. The money is being put to good use, and most people need their cars to get to their jobs and support themselves.
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Lastly
This article is full of great excuses to borrow money from friends or family, and you can use any that fit your situation.
Just make sure that, before you use any of these excuses to borrow money, you have a way to pay it back!
