Asked in Investing and Financial MarketsBankingSmall Business and Entrepreneurship
What risk are there when borrowing a large sum of money from a relative?
November 04, 2007 2:12AM
It could ruin your relationship with them. (very easily)
The risk can include a broken relationship, and some type of payback depending on the personality of the relative. There may be guilt on your part which will constantly eat at you.
Relatives can be a great source of help when in need. However, make sure you discuss the risk possibilities with them, so everyone understands. Hopefully nothing will go wrong but you still need that contingency plan.
There is truth in the statement, "owe no man anything." Still, sometimes there is nothing else to do but count on blood relatives.