When someone you care about is in trouble, you get this sudden desire to do everything you can to help them out. In fact, giving out a helping hand can mean so much more than just doing good to a person you love. It was scientifically proven than helping others out is the secret to living a happy life.
Financial problems can hit anyone when they least expect it. High medical bills, a sudden job loss, or other issues can lead to someone close to you having troubles with money. In times like this, it is only natural that you want to help them out. But talking finances is never easy. Even if all you want to do is help, the other person can feel awkward, ashamed, or guilty. If you want to help out a friend that is going through a financial problem, here’s what you can do.
Financial problems can hit anyone when they least expect it. If you want to help out a friend that is going through a financial problem, here’s what you can do.
Listen and don’t judge
The number one thing you need to do is let them know they have someone they can talk to. It may be hard for them to open up at first, as no one likes to talk about how they got into this financial abyss. Reassure them that you are not here to judge or name names, but rather to help them overcome this situation.
Help them find out what it is that made them reach this point. Maybe it was some poor judgment on their side, or maybe there were some things that could not be prevented. Whatever it is, help them analyze the situation and determine what it is that they can do now.
Help them come up with a plan
“Sometimes, when you are constantly fearing the bank may take your house, because you missed a mortgage payment, seeing the light at the end of the tunnel can be hard. But having someone by your side, that is able to point you in the right direction, can work wonders.” Explains a Philadelphia foreclosure lawyer, as for many of his clients, the biggest struggle when facing foreclosure is keeping their sanity intact.
Offer to help them create a plan to reach financial freedom once and for all. Help them plan a monthly budget, set up financial goals, schedule payments, and determine what else they can do to start working towards a positive outcome.
Offer to help them financially
Asking for financial help from a friend or family is hard, so, if you have the means, don’t wait up and offer to help them out with money. Be very careful how you put it, however, as giving out loans to friends and family can sometimes turn out nasty.
If you can, give them a cash gift from time to time. This way, they won’t see it as a loan, but only as a good deed done by someone that cares about them.
However, if you do want to give them a loan, make sure you discuss things seriously beforehand. Establish how and when they need to pay you back and make sure it won’t make you resent each other. You need to make sure you both understand the implications of a loan.
Have you helped a loved one to get out of a financial crisis?
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