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Sunday, August 19, 2012

Borrowing from Parents is Better than Owing a Collection Company

By Pamela Chiacchiaro

When people take out loans or a line of credit, they may not be thinking in long terms and the fact that they will have to pay everything back plus interest. This leads many people to fall into unnecessary debt, leaving them worried about paying back a large sum of money. But when worst comes to work, they can always try to borrow from their parents to avoid being contacted by a collection company.

It is understandable to not want to owe money to friends and family since money usually is a cause of tension, but it certainly seems better than having to repay late fees, interest fees, and the relentless collection agencies. It seems far more feasible and logical to take out a small loan from someone a person knows rather than having to deal with a million phone calls by agencies.

Everyone who decides to take out a loan or credit in the first place should really make sure that they will be able to repay it. Otherwise, why even put themselves in the predicament of being a debtor? A lot of people fall into debt because of careless budgeting plans, or lack thereof. But lacking money will not stand as an excuse. Everyone must pay what is owed.

People looking to borrow money to avoid collection agencies can seek help from family and friends. Borrowing from someone they trust and who trusts them equally is ideal, but they better make sure to repay them back in full and in a timely fashion. It would be disrespectful to drag out the time it takes to repay them since they were kind enough to lend out money in the first place.

If someone is drowning in a pool of debt with bills creeping up behind them, they should not rule out asking friends and family for some help. As long as the debt goes unpaid, the more it will add up. Everyone needs some help once in a while.
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