We’ve all done it at some point in our lives; for a small or large amount, as children or as adults. Whilst turning to a relative to borrow money may appear to be the easiest option for a short term fix, the truth is, borrowing money from a friend or relative comes a set of expectations from both parties. In some cases, these can often tear families apart. There are many reasons why we believe that borrowing from a relative or friend can have a detrimental effect to your relationship(s). This is why we’ve come up with 8 reasons to not borrow money from family and friends, and should be avoided at all costs.


  1. Expectations – whilst the ‘no strings’ attached saga may seem great from the outset, but very rarely this stands true. There may an underlying expectation that you must be at the lenders ‘beck and call’ for the outstanding debt. The guilt of this will most certainly wear your down and possibly create more negative feelings that not having the money in the first place.
  1. Gift vs Loan – understanding the difference between the two is an integral part in transparency and trust. Unless you have an agreement drawn up and signed between both parties, you may feel less inclined to pay back your loan in full – or at all. Trust us when we say this will play on the back of your mind, and could create angst at any social gathering.
  1. Entrepreneurs – if you’re a small business owner and require start up costs, its best to find another means of lending security rather than a family member or friend. There may be an expectation with the lender requiring more involvement in your state of affairs, by having that initial ‘hold’ over the original start-up costs.
  1. Awkward! – There is nothing worse than attending a family gathering when there is a strong sense of discomfort in the air. Unfortunately as both parties have created the issue, the warm loving family gathering atmosphere that once was.
  1. Lender Hardship – Family members or relatives are more than likely to feel obliged with lending you money. If this is the case, and you’re asking for a substantial amount, you may be putting your family and their security at risk. If you need the money, take responsibility and acquire it through somewhere else.  Personal loan did we hear?
  1. Relationship Adversity – even though you had set your money aside each week enabling you to repay the loan, there may be that anomaly where you can’t. Linsa Finance Limited offers a comprehensive Repayment Waiver Plan which covers your repayments in the event of an accident, sickness or death.
  1. Responsibility – there is nothing worse than having to borrow money from your immediate family, but having your in-laws involved too reaches a new all-time low. Unfortunately by displaying a need to borrow money could show a lack of accountability to them.
  1. Gossip – No one likes being the subject of gossip, especially when it comes to a very private affair. Having your dirty laundry spread across the table at any family event will only put the wheels in motion for the downward spiral of gossip. You’d much rather have subjects of the matter kept between you and your spouse, so that you can decide the best way forward together- instead of being a whole family event.

At Linsa Finance, we 100% support your privacy and discretion. We believe that every customer is an individual and therefore we will conduct our ‘one-on-one’ personal interview to help establish how much you can afford to borrow.


Whether you want to borrow to buy a vehicle, replenish your furniture, go on a family holiday, or consolidate debt, the team at Linsa Finance we will be your, no strings attached, friendly financial service provider.

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