When you’re facing an unexpected bill, planning a vacation, or needing a little extra cash, you might turn to your friends and family for help. In fact, most people would prefer to tap their own support network before applying for personal loans or credit cards; surveys find that more than one-third of Americans have borrowed money from friends and family in the past 12 months. However, while this might seem less stressful than filling out a loan application, it may not always be the best approach.

While your loved ones might be willing to lend you a hand when you’re coming up short, those loans usually don’t involve set terms, a solid repayment schedule, or an agreement on interest rates and how much you’ll pay back. This information approach creates the perfect breeding ground for uncertainty and disagreements that can ruin your relationships.

With a traditional personal loan from an established lender, any confusion can be cleared up by checking out your loan documents, where everyone’s rights and obligations are clearly defined. If you are late making payments or default on the loan, you know what will happen in advance. However, failing to repay a loan from a family member or friend can have much more serious consequences, including resentment and the loss of support from someone you love. Sometimes, these disputes even wind up in court, creating rifts in your relationship. In general, it’s best to let a professional help you with finances while your friends and family support you in other ways.

As a locally owned and operated lender, Coastal Finance Company has been providing personal loans to Savannah, GA, residents for over 15 years. Their services and products are tailored to your needs, giving them the ability to help when bigger loan companies can’t. Give them a call at (912) 303-9979 to make an appointment, or visit their website to fill out an application today. For more finance tips and advice, follow them on Facebook.