What if I can’t afford to repay the debt?
If you’ve borrowed money from a family member or friend and you can’t afford to pay them back you should first talk to them so they’re aware of your situation. They may be able to offer help by letting you spread your payments out, or give you some time to sort things out.
It can be difficult to talk to someone about this, as there’s a chance you could fall out with a family member or lose a close friend because of the money.
If you can't afford to pay your family member or friend back, don’t ignore them. If you stop seeing them, they may just assume you have no intention of paying them back at all.
Instead, tell them why you can’t afford to pay them back. Be honest. Explain what you have coming in and what essential costs you need to pay. You could even show them a copy of your household budget. That way, they can see why you can’t pay them back faster.
Owe money to family and friends and need help?