If you know you'll have a hard time paying back the car loan in a given month, call before the payment becomes late, Hirshman says.
"I work with family members all the time who tell me that if their relative was just open and honest about what was going on with his finances, the relationship would be so much better," Hirshman says.
"Instead, the borrower may say that he'll pay the money in two weeks. Then two weeks comes and goes, and the borrower doesn't say anything. It becomes a huge elephant in the room," she says. "You may not discuss it, but it's always there."
Another part of communication is being willing to listen if family members criticize some of your purchases, Hirshman says. For example, if you eat at a lot of restaurants, then someone who loans you money may wonder why you're not eating at home more to save.
"If you borrow money from family members or friends, they may become judgmental, and you have to be prepared for that," she says.