When things get too expensive, but everyone seems to either want or benefit from such an expense, can you pool resources together? Like many financial choices, this will leave you with your share of advantages and drawbacks, so it’s useful to be aware of this before jumping into anything.
Aside from any legal factors, the points here can be made for any joint cause, whether that is joint expenses, borrowing or anything else. If you’re going to make a major commitment in this way, it is advisable that you speak to a professional first to try and understand your rights and options.
First of all, the costs should, arguably, be equal. If you’re all paying for something, whether it’s a holiday, service or item, then it should be an equal split. It is not fair for you to be paying more and, although it can be tempting to get away with paying less, group commitments such as this often work best when they are based on honesty.
Likewise, if everyone pays equally, who has ownership? This is one of the more complicated aspects of money. Some things, such as syndicates, can be set up to share costs but when it comes to direct items, this often isn’t possible. Even then, joint ownership is a long and complex commitment. What would happen, for instance, if someone in the group wishes to opt out or sell? In these cases it’s best to have money saved over to help buy their share out, otherwise this could become a complicated argument that could tie up much more of your money.
Finally, the legal side can be complicated, depending on what is actually being purchased/borrowed/spent etc, but there are always common basics involved in any legal situation. Contracts can help to clear up any problems, but amongst friends and family they can be a difficult subject to bring up.
Obviously, a payday loan is the kind of borrowing that you can’t share with other people. This is because it’s a short term loan, based on your payday. Making it more complicated by involving more people would slow the entire process down, possibly defeating the point behind them in the first place.