Have you ever considered Love Money as a solution to overcome a difficult financial situation? Whether it’s a family member or a friend ready to lend a helping hand, the idea may seem attractive. But is it really without risk?
Over the past three decades, we have observed many individuals forced into bankruptcy or consumer proposals, with creditors including close ones who had attempted to assist them. These situations underscore an undeniable truth: mixing personal relationships and finances can be perilous.
Imagine your mother offering to dip into her savings to help you. In the moment, it seems like an invaluable gesture of love. However, this choice is fraught with “ifs”: what if her financial situa on worsens before you can repay her? The implications could be significant, for both her and you.
Also, consider the scenario where a friend or sibling goes into debt to assist you. This decision would immediately affect their credit and future borrowing capacity, limiting their financial op ons un l the debt is cleared. What happens if you decide to formalize this loan with a promissory note? It may clarify things in case of a dispute, but it does not guarantee repayment, especially if institutional creditors are already in line.
Before turning to Love Money, it is crucial to consult a Licensed Insolvency Trustee. This step will allow you to assess your situa on objectively and find suitable solutions, without jeopardizing the financial future of your loved ones.
We hope this reflection helps you be er understand the stakes of Love Money and make informed decisions for you and your loved ones. Family and friendship solidarity is valuable, but it must be approached with caution when money is involved.
Before making this common mistake – Consult Us
We do more than just bankruptcies, and you can count on our Licensed Insolvency Trustees to provide you with impartial and independent advice. Do not hesitate to consult us. Your future after debt, we imagine it!
For a future beyond debts, consult our trustees by visiting ginsberg-gingras.com or by calling (800)567-1905. First no obligation consultation in person, by phone of video.