You should try other methods before asking your relatives and friends for money. Borrowing money from friends and family can be emotionally difficult so proceed carefully.

1. Present your case.

Help your relatives and friends understand your situation and take time to explain why you need the money now and what you need the money for.

2. Set up clear repayment terms

In writing, clearly communicate when you will repay the money and the amount of interest that you will pay.

3. Have a backup plan in case you fall behind on payments

What if you can't pay your creditor back? Consider using something valuable to you as collateral (something that your creditor can keep if you fail to pay).

4. Set up a recurring, automatic transfer.

Forget about having to remember to pay your creditor each month. Let your bank remember for you.

5. Keep a written, signed agreement.

Put all the details of the loan in a written, signed agreement. You can use the AdobeScan mobile app to share your signed document.

6. Spend your relatives' money carefully.

Think carefully about what you will spend your relatives' money on. If they see you dining out on social media they probably won't be too happy...

Sources: US News, Forbes

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