The major reason why loans obtained from families and friends can be problematic is based on the fact that they might default on payments.
What is a Loan?
This refers to the money collected from a person or a financial institution to solve a need that is usually paid back with interest.
Hence, we can see that based on the fact that loans from friends and family is done without a contract, sometimes, the payments can be defaulted and this can ruin the relationship.
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