Loans from Friends/Family

Today, most Americans cannot predict their spending and save a lot. The incomes of ordinary citizens are growing much more slowly than the prices of basic goods and services.

In addition, every person sometimes has unforeseen difficulties that can lead to a financial impasse. A breakdown of a washing machine or a car, malfunctioning plumbing, a sudden illness – such situations require a quick solution.

And if you are short of money and expect to get your next paycheck in 1- 3 weeks, you have to contact family, colleagues, friends or credit organizations for help. Some people think that borrowing is fraught with hopeless debt.

Is it true? What is more profitable: borrow from friends/family or get a loan from a financial institution? Let’s figure it out.

Should you borrow from friends/family?

Many people do not trust financial institutions. Therefore, if necessary, they prefer to borrow from close people – friends or relatives.

This seems to be more profitable since friends or family will not demand payment of interest, they will not strictly limit the terms of the loan repayment. And as a token of gratitude, you can give them a present or organize a trip to a cafe.

It is also believed that friends will not ask unnecessary questions or condemn you for financial troubles. Nevertheless, as practice shows, these hopes are often not justified.

In addition, financial mutual assistance can ruin a good relationship. After all, it is not always possible to repay the debt on time, and the “creditor” may also have an urgent need for money.

Where is the best place to get a cash loan?

If you do not want to answer uncomfortable questions and worry about possible conflicts with loved ones, contact microfinance institutions. These organizations, like banks, operate 100% legally. And the requirements of MFIs are much more loyal.

Here, in order to get a loan, a client does not need to provide certificates from your place of work, look for guarantors or collateral. Actually, there is no need to even go anywhere. Most of these organizations offer to get a loan online.

To do this, the user just needs to fill out a short loan application form and submit it.

The loan decision comes within 5-10 minutes, after which the declared amount is deposited to the client’s bank account.

Benefits of taking loans from MFIs

Unlike banks and friends, microfinance institutions don’t ask why a person needs money. These companies lend cash for any purpose, they do not check your social status, income and credit history.

Loans can be approved to Americans without official employment, the unemployed, students, pensioners, and even debtors of other financial institutions. To get approved, you must:

  1. be an adult citizen of the USA;
  2. have an ID and a valid bank account;
  3. have a valid phone number and have access to the Web.

Many people believe that online lenders use colossal rates of 1-2% per day. But if we take into account that payday loans are issued for a short period (1 to 30 days), then the overpayment turns out to be insignificant. The main thing is to pay off the debt on time.

Also, microfinance companies offer discounts and promotions that can significantly reduce the amount to be returned even at a standard interest rate.

If the borrower does not manage to pay off the loan on time, then the contract with the company can be extended for a certain period (usually a month).

We hope you find this information useful! If you have an urgent need for money and you are reluctant to contact your friends, you can always take a loan via on the most favorable and affordable terms!