Laura Day’s Top Ten List – Number 8: “Friends and Family” Plans

There are some things we see over and over that are really not in your best interest.  Here’s why:

#8.        The “Friends and Family” Plan

Although the telephone advertising of the “Friends and Family” plan is enticing, it should not be used for creditors.  Either borrowing outright from friends and family members, or using them to co-sign loans with you, is almost always a bad idea.  The emotional entanglements, the extra guilt and heartache on both sides of the equation, is just not worth it.  There will be enough emotion to deal with in and of itself without having to bring friendships and family relationships into the equation.  Further, if you end up in bankruptcy or other angry creditors, repayments to friends and family might be subject to claw back litigation.

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