What to consider before backing out of financial commitment with Family?

Have you experienced any situations where your family member has asked you for help with any financial support? Have you had any agreement to provide a loved one with financial assistance? You may support the person for financial assistance and want them to grow financially but you must consider some things before you provide financial support. 

What matters to think about before providing financial assistance?

There are various ways to provide financial assistance to family members. Parents allow their children to keep living at home during their college and after graduation. Children give gifts to parents for help with large purchases. How much support do you give to your family members when you first think about your financial situation? 

Will you go into financial debt and push back your goals which are important to you. You may have to postpone your goals such as buying a house property or planning for an early retirement. Think and decide about the results of commitments and then plan for the future. 

If you are planning to co-signing a debt with your family members then you should keep that in mind. You should be sure of two things in life. The first thing is can you afford to repay the loan if the primary borrower is not able to pay off the loan? If the answer to this question is yes then you should go ahead. If the answer to this question is no then think again before you decide on the financial commitment. 

It is a misunderstanding that co-signers are partly responsible for the debt and the truth is that co-signers are fully responsible for the debt. If you’re signing as the co-signer then you are fully 100 percent responsible for the debt payment. Think about the credit score and start repaying the loan. There are also other problems that need legal advice prior to giving legal advice. The other thing is if you have to consider relationships with family and friends then you have to cover payments for them. 

Irrespective of what circumstances you are in it is difficult to say no to someone you love. It is good to be passionate, honest, and compassionate and be firm on decisions that you have made. The disappointment of your family member is a price that you have to pay for creating damage to your relationship and financial help.

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How to help family members?

If you cannot provide any commitment to give financial support it does not mean that your family members will not appreciate you emotionally. Make a plan to reach the goals so that you achieve goals and also provide financial support to your family and loved ones. 

If you are facing any kind of difficulty or financial problem with the repayment of debts then it is good to consult a counseling center. Free and confidential appointments are provided with the appropriate decision-making. Counselors can guide you and your family members to get out of financial problems. 

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Think twice before you provide support for a loved one because you may not know where money will come as support for you. You should also keep in mind your financial situation and well-being. If it is money issues then relationships, beliefs, and money values are the main concern. If you are not concerned about financial matters then you are entering into trouble.

Meet the author
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Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It’s a commercial mortgage banking company. He has a “Doctoral Degree in Commerce” and two master’s degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.







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