One Way To Get Out Of Debt Fast

It could be because of the generally good nature of humans that we finds more people able to manage their own finances but are unable to keep track of the money they lend to other people. When it comes to collecting what other people owe you, many people shy away from collecting what it rightfully theirs and it keeps you strapped for money to pay your own bills sometimes.

Unlike ourselves, some people don’t take their financial obligations very seriously and would rather just deal with the here and now. This will not get you out of debt if you do not take responsibilty over your finances.

You have probably experience being asked for a small amount of money by your friend and being promised to have it repaid, only to realize it never was. Even if your friend promised to repay his or her debt, at the back of your mind you are certain that that isn't true. If you want to get out of credit card debt fast, try to collect what is owed to you and apply that to your credit cards.

Of course, when we begin to lend greater amounts, regardless if it were for our family or friends, we have to have some legal documents to support the transactions. You might want to consider collateral and interest. But don’t be too greedy with your interest rate or it will end up just like they were in credit card debt.  This will not help you get out of credit card debt fast nor will it help them be able to pay off your debt.

Advice given by very wise people of the past tells us to simply not lend money to family or friends, and it really is excellent advice. You aren’t a bank or a lending institution. You are simply very good at managing your own finances. 

If lending institutions won't lend your friends and relatives money, it is for a very good reason. The institutions have information that tells them that these people may not have enough resources to pay your money back. You will not have an idea of how they have handled their finances since you will not have access to their credit history like a bank. All you are going to know is what they choose to tell you.

The best answer when friends and relatives ask you to loan them a substantial amount of money is, "NO.” But if you do decide to make the loan anyway, at least make it legal and binding with contracts, collateral, and interest.

Equity vs. Debt