This has been an extremely difficult Financial year for many families in the UK. Inflation has hit a 40-year high, causing a cost-of-living crisis. Everyday goods are now much more difficult to afford, and Family budgets are being pushed to the limits. And with a recession on the horizon, the chances are some of your family members might be struggling. Below, we explore different ways you can help family members with financial difficulties.

Personal loan

One of the easiest ways to help a family member is through a personal loan. You’ll give them some of your own money, with the understanding that they’ll pay that amount back by a set date. The issue here is if your family member can’t afford to repay you when the time comes: you don’t want to fall out with a loved one. If you’re worried about this scenario, you could work out a backup plan in advance or try a different method.

Indirect financial assistance

Another way to help family members is through indirect financial assistance. Rather than giving them a lump sum in a loan, you can help cut their expenses. For instance, by taking out multi car insurance and including them in your package, you can cover their car insurance costs for them.

Help find local resources

Local resources and help could also be a good idea for your family member. If they have a personal problem that’s causing them financial difficulties, you can try and find help for them. For instance, if your loved one is suffering from a gambling addiction, you can find a local service to help tackle their problem.

Cash gifts or gift cards

If you’re concerned that your loved one might not spend a personal loan on something beneficial in their situation, you could look into more specialised help. By getting them a gift card, you can restrict their spending to just where it’s needed. For instance, a grocery store gift card can encourage your loved one to spend the cash you offer on essentials.

Set boundaries

Helping a loved one can be hard. Especially if your assistance isn’t making a difference. For your own sake, it’s important to set up boundaries to protect yourself. By setting clear rules for what you will and won’t help with, you can have clear expectations with your loved one on their financial future and how you can help them. This is a difficult conversation but can work well.

Seeing a family member suffer from financial issues can be hard. But by following the guide above, you should be in an excellent position to offer effective support.