Even though most Singaporeans are financially stable and the economy in the country is relatively sound, the cost of living is still unbearable to most people. Getting a loan from a financial institution to foot monthly bills is not a good idea. As a result, most people opt to get personal loans from friends and family members. In this article, we will look at how you can help a family member or friend who is in debt today.
How Do I Help a Friend who is Struggling Financially?The first thing to note is that it is OK to help a friend who is struggling financially. However, it is imperative to be careful how you do it to avoid ruining your relationship with him or her or making the process unnecessarily weird to both of you. Here are four tips on how to help your friend without making things weird.
Give AnonymouslyAnonymous giving is one of the easiest ways of helping a friend who needs financial help without making things awkward between the two of you. You do not need to inform them that you are giving them a personal loan to help them sort out the bills or expenses. Send them a gift card with a voucher that they can use to purchase household items in one of the local stores or send them an encouraging card with cash in it. Thanks to advancement in technology, you can also shop online and direct the store to deliver the products to them on a specific day of the week when you are sure they are home.
Be CasualThis builds on the previous tip about giving anonymously. Nobody can predict the future and what goes around comes around. When offering financial help to a friend, it is recommended to be casual about it. Otherwise, they might feel like you are judging them or taking advantage of their situation. Concisely, be cool about it and make the repayment terms flexible and ideal for them. Consider their current situation. You can even request them to come up with a repayment plan that best suits them to avoid any challenges down the road.
No Strings AttachedA personal loan is great, but it can easily ruin your relationship with your friend or family member if you are not careful how you go about the process. Sure, you will agree on a repayment plan that is ideal for both of you but do not expect something in return afterward. That is, do not expect him or her to “owe you one” whenever you call in the favour. Remember, the idea is to help them become financially stable out of love, with open hands, and expecting nothing in return.
Know Your LimitsWhen offering financial help, it is important to consider your current financial capability to avoid plunging yourself into a financial turmoil. Know your limits and adjust your budget accordingly. Otherwise, if you give more than you can afford, you will end up feeling resentful and will eventually complicate your relationship.
How Can I Help A Friend or Family Member Get Out of Debt?Saying “I’m in debt and I don’t know what to do” aloud can be terrifying to even someone you trust. Therefore, do not expect your friend to confess to you openly that they are in debt and need your help. Here are some signs you should look out for before you make the next move.
- Your friend has become more secretive and no longer talks about their finances as openly as before
- Your friend has changed his or her spending habits, for example, spending less or overspending without a clear plan of repayment
- Sold their car and started using public transport
- Have had a recent loss of income due to incidents such as divorce, illness, bereavement, or being made redundant at their workplace
- Seem depressed, anxious, or withdrawn
- Avoid speaking or interact with you altogether