Loan Online vs Borrowing Money From Friends or Family

Have you tried borrowing money from a friend or family? Or taking a loan online?

If so, you know the pros and cons of that both.

Which one do you prefer and why?

If you're going to ask me, I experienced both.

I tried borrowing money from my friends or relatives. Then I underwent a loan online.

Loan Online

It's been 6 months now since my hubby loaned some money online. He needs to do it before when I'm on maternity leave.

I cannot work. So he's the only one providing money for the family.

And that can't satisfy our needs and expenses. So what he did is loan online. He uses the Gcash app... "Gloan" to be exact. He borrows P10,000.

What's a good thing about a loan online is that it's quick and convenient. You don't need to go somewhere to process it. Just meet their requirements online like documents for identification, then that's it. You can be approved quickly. And then the amount is transferred to your bank account right away.

Yet what I don't like here is the higher interest rate. Like for example on our end. We borrowed P10,000, but we're going to pay P13,932.70 for 9 months. That's a  3.99% interest rate based on the calculation.

As of now, we paid P9,402.36 for 6 months. Just 3 more months and we're done paying.

P1,510.11 per month is what we need to give if we're paying on the exact due date. If not, every day will add to the interest. Just like what happened in January. Almost P341.7 has been added due to the late payment.

See... That's what I don't like about loans online.

Borrowing Money From Friends or Family

Borrowing money from a friend or family can be an option too. If you don't like the payback with interest on the loan online, this is the best choice.

Your friend or relative will not charge you much interest just like a loan online. Or what's better is they won't offer any interest at all. So the only amount you need to repay is the exact amount you borrowed.

This is what I always choose when I need some money. Just message one of my friends or chat with my brother or Mom about it, then they will let me borrow if they have some.

But, here's the but. Any action has always been a con.

Indeed, they won't charge you interest on your borrowed money, but having a loan or debt on them can seriously damage your relationship.

Just, for example. If you need money and you know your friend has it, but then he refuses to lend you some. Would you be hurt? Or your brother asks for your payment, but you can't able to repay them. Would it be awkward on your meet-up?

This is a matter of emotional than monetary.

So, even if it's a loan online or borrowing money from a friend or family, there's always an advantage and disadvantage.

So which is better?

In my experience, it depends on the situation. If you need a large amount of money instantly then having a loan online is better. But if you don't think you can pay it with a higher rate of interest, then choose to borrow from a friend or family. But make sure to get the money that you just need to be able to repay them.

Reminder

Every one of us needed money for our everyday expenses and needs. But avoid being in debt as long as you can. Then learn to pay little by little until you're free of debt.