7 in 10 Americans admit that they’re experiencing financial problems.
These people are either drowning in debts or experiencing a hard time meeting their basic needs. It’s only rational for these individuals to reach out to their friends and relatives for help.
So, what do you do when you receive a financial distress call from a loved one?
Keep reading to learn how to help a family member with financial problems.
Offer a Cash Gift
The quickest way to help a loved one facing financial problems is by offering a cash gift. However, only gift what you can afford and don’t sink in debt trying to help a family member. In addition, communicate that the money you’re giving the loved one is a gift, not a loan.
If the loved one is far away from you, compare various money transfer services to decide the one to use. Use resources like transferly.com to find a money transfer service with the lowest rates. Besides, you’re seeking help on finding a fast and secure method of sending money.
Grant a Personal Loan
When a loved one faces financial trouble, they may reach out to you to loan them money. Although it’s okay to give them the loan, you must insist on discussing the terms for loaning them money. You want to make it clear when they’ll pay you back the loan and the repayment term.
Also, when loaning money to a loved one, ensure you agree beforehand whether you’re charging them interest. The objective is to minimize conflicts when the loan fall due.
Give them Work and Pay Them
Loaning money to friends and relatives could potentially damage your relationship, and that’s why you’re against doing it. Yet, it’s wrong to see a loved one suffer financially and refuse to help. That’s why you should consider giving this person work instead of loaning them money.
The amazing thing is that you don’t need to be super-rich to give work to a loved one facing financial problems. You can give this person simple home chores such as cleaning the house or helping you move. The key is to treat the loved one as an ordinary employee and ensure you give them fair pay.
Suggest They Seek Professional Financial Advice
It’s understandable to dodge a loved one who keeps borrowing money from you, and they never pay. Yet instead of hiding, you talk to this person and find out what they do with their money. Ask this person if they’ve considered seeking professional financial advice.
You want them to talk to an expert to learn how to manage their funds best and minimize the need to borrow.
Be a Friend Indeed by Helping a Loved One Facing Financial Problems
Facing financial problems is a part of life, and it’s wise to know how to help each other out. When you receive a financial distress call from a loved one, use the above methods to help them out. Know when it’s best to give out a cash gift and when to provide loan money to this person.
Enjoy more amazing Business and Personal Finance tips by checking out our other blog posts.