Nobody on God’s green earth is too old for a quick loan from a family member. Although these are the trickiest of loans, and it pays to think long and hard before you borrow money from family and friends, it is definitely an option to consider.

When nobody else will help you, often your family and friends will. Your responsibility is simply to make sure you pay back the loan in full and on time. Furthermore, you should pay them a reasonable APR on the loan.

Think about how you will repay a family loan. Regular creditors under the FDCA (Fair Debt Collection Act) are required to follow many different procedures and rules about how they can contact you regarding past-due loans. The Fair Debt Collection Act applies to the conduct of bill collectors and regulates when they can call and also spells out defenses and rights of the consumers.

Nothing limits Uncle Charlie from mentioning the loan every time you see him. You should know going in whether or not you want this type of pressure going in.

You may decide a cash advance from a credit card at a high interest rate is a much better deal than possible grief and embarrassment.

If you decide to go through with a loan from family or friends there are things to consider. To be successful, these loans should be written down and documented. They should allow the lender to receive a reasonable return on their money. This may introduce an element of arm’s-length dealing into a friendship or family relationship that is just too uncomfortable for you.

An agreement over an unsecured personal loan can be written up as a promissory note. Promissory notes are available online and where office forms are sold. They are basic forms that spell out how much the loan is for, when it is due, and what the interest rate is. Never borrow money from family members you are not sure you can repay.

Even more so than in commercial loans, the downside of not being able to pay the loan back needs to be considered since there is usually more than just money riding on the line with family loans.

Although these loans have these perils they also have several plus factors. Family loans are often the source of money that makes many of good things in life possible for many people. When the process works, it can work so well that the many successful loans between family members pass without notice.

For example, many down payments for first-time house are loans from parents. Also, many college and graduate educations are pay for with loans directly or indirectly from grandparents.