Times are tough so sooner or later we are going to have close friends and family members that become unemployed. Alternatively, they can end up injured and insurance does not cover medical bills. Responding when someone you love has financial problems is quite difficult simply because they might be too proud to accept help. Fortunately, there are different ways to help them out. Here are some ideas that you can always try.
Offer Cash Gifts
When short term cash flow difficulties appear, financial gifts are highly recommended. Just think about how much you can offer without ending up in a tight situation and offer that maximum all at once. Smaller gifts from time to time can also work. The idea is to be sure that the receiver understands the fact you are offering a gift. They can always visit instant payday loans direct lenders or similar for loans. Since you care, highlight that the money is a gift.
Create Personal Loans
If the loved one does not want to accept free cash, you can always set up a loan deal. Talk with the persona and write down all loan terms on a sheet of paper. You basically make your own financial arrangement with them, including loan amounts, how the repayment happens, payment due dates, recourses and even interest rates if that is what you discuss. Sometimes this is also a very good idea if the amount you loan is large and could impact your own finances when not repaid.
Co-Sign Bank Loans
Obtaining a loan from a bank is not as easy as it may seem, especially when employment is lost or the borrower cannot work for a period of time. This is where you can step in and offer a huge helping hand by co-signing the bank loan. Keep in mind that in this case you are using your own credit history to guarantee that the borrower is going to deal with the contract. When borrowers fail to do so, it is your responsibility to repay the loan. Although things may seem great, be sure that you are ready to do this since you do not want your own personal credit to be affected.
This is a really good way to help someone you care about. If there are some side jobs that you need help with, the individual can help, get money in return and not feel bad about it. There are always some side jobs that you want to do and that you keep postponing. Offer payment for the person that has financial problems to help you out. This is sometimes much more appreciated than just giving out money.
The last recommendation is to consider prepaying some utility bills. This is really good during financial crunches as it reduces stress as problems are being solved. The simple fact that bills do not have to be paid for a few months can help someone get back on track much sooner than possible without outside help.