Mixing money and relationships is always a bit of a risk. If you fall behind on repayments, it could well create tension between you and your friend or family member and damage your relationship, especially if you have borrowed a particularly large amount.
Note that if you borrow a friend’s credit card and run up a large bill, they’ll be held responsible for it by the lender which could well be a cause of resentment, as well as having a lasting negative impact on their credit score.
If you fail to pay back money that you owe, your friend or family member could take you to the small claims court over it. It goes without saying that neither of you want to be in this position.
The best way to reduce the likelihood of a falling out is to sit down with them and make a very clear plan about how you’re going to make the repayments – where you will get the money from, how often you will repay and how much each instalment will be, what happens if you miss one, and so on. Keep in contact throughout the repayment term and be honest if you think there might be a delay in a repayment or another issue – they are likely to appreciate it much more if you are upfront about a problem rather than if you leave it for them to find out themselves.