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Here’s how you could
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What is a small business line of credit?

A small business line of credit, like a small business loan, is a flexible way
to cover short-term business expenses as needed. A line of credit works more like a credit card than a traditional loan. You can access financing through revolving credit up to an approved limit, rather than receiving an initial lump sum. You then make monthly payments on what you borrow and are only charged interest on what you owe.

With SoFi’s marketplace, one search could match you with a provider
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Search for financing

(without impacting your credit score)^†

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FAQs

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Many of us have heard of frenemies — those so-called friends who are also enemies in some way, causing tension and forcing us to deal with lots of passive-aggressive behavior or even downright sabotage.

But what about financial frenemies? These are people in your social or professional circle who pressure you about money, often undermining your own financial well-being in the process. They may guilt you into covering the bill, insist you splurge with them, or take every chance they get to one-up your financial accomplishments.

At best, having financial frenemies in your life is a challenge; at worst, it’s perilous. But don’t feel stuck if this is sounding familiar. Setting money boundaries, while sometimes uncomfortable, can make a huge difference to your sanity and your wallet. And let’s face it, with today’s increasingly unpredictable economy, every little bit of financial security feels precious.

Do You Have Financial Frenemies?

A financial frenemy can be anyone in your life who undermines you financially, regardless of motivation. Some are just careless or oblivious. Others, insecure or envious. A few may be manipulative or even malicious.

Mary Beth Storjohann, a CERTIFIED FINANCIAL PLANNER® practitioner who wrote Work Your Wealth, groups financial frenemies into six main categories. The first three can actually hurt you financially, while the others take more of a toll on your mental health.

•   The Entitled Frenemies: These people frequently ask you to cover them (“Can you spot me? I’ll pay you back!”) but almost never repay. They take advantage of your generosity (or hatred of awkward situations) — sometimes without even realizing it.

•   The Budget Busters: These people often encourage reckless and wasteful spending, derailing your financial plans with lots of talk about treating yourself. (“You deserve it!”)

•   The FOMO (Fear of Missing Out) Frenemies: These people pressure you to overspend just like budget busters do, but their motivation is tied to cultural pressures and the latest trend. This makes them short-sighted about their (and your) spending. (“Come on, just this once!”)

•   The One-Uppers: These people constantly measure your financial choices against their own, trying to burst your bubble or pressuring you to keep up. (“You got a $1,000 bonus? Nice! I just got a $10,000 raise.”)

•   The Priers: These people are just plain nosey. They are always asking money questions that make you uncomfortable. (“How much do you make? What did your car cost?”)

•   The Green-Eyed Monsters: These people are envious of your financial accomplishments. They see everything as a competition, always striving to outdo you, and often blaming you for their insecurity. (“Must be nice to be able to afford that.”)

How to Handle Financial Frenemies

It’s hard to set limits with a financial frenemy until you face that there’s a need. So ask yourself: How often do you feel uncomfortable with a friend because of money? Do you feel resentful? Or guilty? What about patterns — are there certain situations that always seem to throw your budget out of whack? Do you feel regretful about your spending whenever you’ve just spent time with a certain friend? Is there one person who can make any conversation about money?

Setting boundaries requires some confidence and a willingness to feel uncomfortable, but it’s usually well worth it. Be prepared to refrain from certain activities and say no (an email or text works if facing them is hard.) In some cases, you may even want to cut ties with your financial frenemy.

While every situation is different, clear, consistent communication is critical to setting any limits. Here are some other helpful tips.

Stay Firm in Your Financial Goals

Friends often have different incomes. If someone tries to pressure you into joining them on an expensive vacation or a big dinner you can’t afford, be upfront that you can’t, and stand firm. You can even blame your financial planner (imaginary or not) to make it feel less personal, according to Storjohann.

For example: “That sounds like an amazing trip, but I’m focusing on my savings right now. Let’s plan something that fits both our budgets.” Or, “I wish I could, but my financial planner says I need to forgo vacations for a while so we can save for a house.”

Declare a New Policy

If you’ve got a frenemy (a close friend, a work colleague, or even a gym buddy) who always seems to forget to Venmo you after drinks out, blame your “new policy” when you tell them you can’t cover the bill. This not only depersonalizes your rejection, but takes the focus off of that specific interaction. After all, a policy is a policy.

For example: “I’ve decided to stop lending money to friends — it’s just a new policy to keep finances separate. Hope you understand.”

Redirect the Conversation

If someone is constantly bringing up money, comparing their financial situation to yours, or trying to get you to share financial details, try redirecting the conversation. Not only might it help you avoid being triggered, but it’s a kind way to let them know you just don’t want to go there.

For example: “Everyone has different priorities when it comes to money. I’m really happy with the choices I’m making for myself.” Or, “I’m not comfortable getting into details. It’s nothing personal, I just never divulge that sort of thing. Anyway…”

Surround Yourself with Financially Supportive People

Simply put, find friends who understand where you’re coming from. They don’t have to share your financial priorities, but they should appreciate and support them — and reinforce your responsible financial habits rather than challenge them. That said, don’t give up too quickly if your existing social circle isn’t supportive. Make sure they know how you feel. After all, no one is a mind-reader, and they may not realize how they’ve been affecting you.

For example: “I’d really love your support here. I’m trying to be more mindful of my spending, so I’d appreciate it if we could find activities that help me keep my budget.”

Role Play

No one likes being uncomfortable, but setting money boundaries is a lot easier if you can tolerate awkward situations. Try practicing what you would say to a financial frenemy by role playing with a close friend you trust. The harder they make it for you, the better you’ll get at navigating impromptu situations, so tell them to let loose!

When Money Boundaries Matter More

A financial frenemy’s bad influence can be particularly damaging when your job or financial situation is less stable. That’s precisely when you shouldn’t be making impulsive purchases or taking on unnecessary credit card debt. So don’t feel guilty or selfish about setting clear limits and forging healthier relationships. You deserve to prioritize your own financial well-being.

Image credit: Bernie Pesko/SoFi Source: PeopleImages/iStock

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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As the president pushes to close down the U.S. Department of Education, it’s creating a lot of confusion about the status of the federal student loan system. Some borrowers have even questioned whether they have to keep making their payments.

In short, if you have federal student loans, stay the course. Keep up with your payments and don’t make any assumptions while the government is in flux.

Yes, President Donald Trump has said he hopes Linda McMahon, his nominee for Education Secretary, will “put herself out of a job.“ But even if the Education Department is abolished — and that’s a pretty big if — another federal agency would likely absorb the department’s Federal Student Aid office, some experts say.

The Treasury Department or the Internal Revenue Service (which is part of the Treasury,) are among the most logical homes for the FSA, which oversees more than $1.6 trillion in outstanding student loans.

“There might be disruptions, but borrowers still have to pay their student loans regardless of what happens to the Department of Education,” student loan attorney Adam Minsky told CNN.

The potential for disruptions makes it all the more important to keep your own records of anything related to your loans. Government websites are undergoing drastic changes, so make sure to keep track of all the payments you’ve made, including any that count toward forgiveness through the Public Service Loan Forgiveness (PSLF) program or an income-driven repayment plan.

As for the status of student loan relief added under the Biden administration, it’s unclear what will happen.

Last week a U.S. appeals court sided with seven Republican-led states trying to block the implementation of SAVE, a Biden-era repayment plan that sought to lighten monthly payments and cancel balances after as little as 10 years.

“I would sort of rewind to when you took out the loan and what you anticipated repaying at that time. And that’s probably where we’re going back to,” Beth Akers, a senior fellow at the American Enterprise Institute, told Nerdwallet.

Trump hasn’t detailed his plans for student loans or the department overall, but has condemned its spending as wasteful, citing the nation’s cost per pupil relative to other countries.

(It’s worth noting that McMahon pledged in her confirmation hearings to preserve certain existing programs, including PSLF and Pell grants for low-income college students.)

That’s not to say the Trump administration can revoke the forgiveness granted under the Biden administration — $189 billion in loans for over 5 million borrowers, according to Mark Kantrowitz, a nationally recognized expert on student loans and financial aid.

Legally, there’s no precedent for clawing back any loans that have already been forgiven, Kantrowitz wrote for The College Investor. Court challenges would be time-consuming and probably insurmountable.

So what? Don’t let the uncertainty surrounding the future of the federal student loan system throw you off course if you have outstanding loans. While the situation is very fluid, the best thing you can do for yourself is keep making your scheduled payments, keep careful records, and keep abreast of the latest developments.

Related Reading

•   What Will Dismantling the Education Department Mean for Your Student Loans? (ABC News)

•   Should You Refinance Your Student Loans? It Could Be a Smart Decision—’The Landscape Is Shifting’ (CNBC)

•   Is Student Loan Forgiveness Possible Under Trump? Experts Aren’t Sure (Bankrate)

Image credit: hobo_018/iStock

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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