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7 Sins of Family Loans - How Family Loans go Bad

By , About.com Guide

7 of 7

Ignoring the Alternatives
Family loans are the wrong choice in some situations. They make Thanksgiving dinner taste a little different, they can ruin relationships, and they can put relatives in a difficult financial position.

Before you use a family loan, rule out the alternatives. You may find that banks will lend you money but family is your best resource given your circumstances, and that’s fine as long as you’ve evaluated the alternatives.

If banks won’t lend to you, at least investigate peer to peer lending services. You may find a loan from sympathetic borrowers at better rates than banks offer.

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