Letting a friend borrow some money

Aimster

Lifer
Jan 5, 2003
16,129
2
0
I don't trust anyone 100% in this world except my family....

Does it matter what he signs? I'm just going to write something on paper and tell him to sign it.

 

FoBoT

No Lifer
Apr 30, 2001
63,082
12
76
fobot.com
no it doesn't matter, he will either pay you back or not

just type up something saying how much you loaned him, how much interest, when he has to make payments, just cover the basics , make 2 copies and you both sign both copies


then wait and see if you ever get a nickel back
 

DingDingDao

Diamond Member
Jun 9, 2004
3,044
0
71
Do NOT lend your friend money. It will only cause friction in your friendship. It's possible you may never see that money ever again. How much money are we talking about? Is it your best friend? Acquaintance?

EDIT: If you decide to go through with it and give your friend the money, have a contract written up noting the loan amount, interest, and payment plans. Also make a note of penalties. Have both of you sign in IN THE PRESENCE OF A WITNESS and have it notarized. This is your only hope if your friend decides to balk on the loan and you want the money back.
 

hevnsnt

Lifer
Mar 18, 2000
10,868
1
0
Originally posted by: DingDingDao
Do NOT lend your friend money. It will only cause friction in your friendship. It's possible you may never see that money ever again. How much money are we talking about? Is it your best friend? Acquaintance?


yup

Only give it too him/her if you plan on "GIVING" it to them
 

Linflas

Lifer
Jan 30, 2001
15,395
78
91
If the small claims court shows on TV are any guide it needs to document that it is a loan and your expectation of payments (monthly, weekly etc) and when you expect payments to be completed.
 

Demon-Xanth

Lifer
Feb 15, 2000
20,551
2
81
If you loan money to family or friends. Consider it gone. Any attempt to force a collection will pretty much kill any relations that you had with them.
 

simms

Diamond Member
Sep 21, 2001
8,211
0
0
How much? I wouldn't lend more than $100 to my CLOSEST friends, and I probably wouldn't give more than $20 to just a casual friend.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
I don't know why people say NEVER lend to friends. If your friends are that lame, dump them as a friend. Of course on the other hand you shouldn't be so lame a friend as to ever ask for money from one in the first place.
 

JoLLyRoGer

Diamond Member
Aug 24, 2000
4,153
4
81
Here is some advise and you can take it or leave it.

Don't EVER loan any friends (and in many cases family) money if you expect them to actually pay it back. If they do then great, but 9/10 times that money is gone.

I had to learn this the hard way more than once.

My .02
 

Demon-Xanth

Lifer
Feb 15, 2000
20,551
2
81
Originally posted by: Skoorb
I don't know why people say NEVER lend to friends. If your friends are that lame, dump them as a friend. Of course on the other hand you shouldn't be so lame a friend as to ever ask for money from one in the first place.

The reason why "NEVER" is used is because collecting on the loans kills friendships. That said, I have some friends and family that I wouldn't loan $5 to. But then I have others that I'd loan $5000 to at the drop of a hat.

I have loaned $200 to a friend. I never expected it back. I never got it back. Not once have I ever brought it up. (he has a few times)
 

Ameesh

Lifer
Apr 3, 2001
23,686
0
0
Originally posted by: Skoorb
I don't know why people say NEVER lend to friends. If your friends are that lame, dump them as a friend. Of course on the other hand you shouldn't be so lame a friend as to ever ask for money from one in the first place.

seriously I am willing to give any amount of money to my friends because i trust them, I am sure they would do the same for me.
 

virtueixi

Platinum Member
Jun 28, 2003
2,781
0
0
I concurr. In the rare times that I have borrowed money from friends I pay them back next time I see them or go out of my way to bring it to them. Unfortunatly, most of them don't do the same.
 

mryellow2

Golden Member
Dec 2, 2000
1,057
0
0
I'd give any of my close friends money if they needed it without expecting payback. If it's a semi-largish amount, say $1k+ or so I'd probably tell them to go to the bank.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: Demon-Xanth
Originally posted by: Skoorb
I don't know why people say NEVER lend to friends. If your friends are that lame, dump them as a friend. Of course on the other hand you shouldn't be so lame a friend as to ever ask for money from one in the first place.

The reason why "NEVER" is used is because collecting on the loans kills friendships. That said, I have some friends and family that I wouldn't loan $5 to. But then I have others that I'd loan $5000 to at the drop of a hat.

I have loaned $200 to a friend. I never expected it back. I never got it back. Not once have I ever brought it up. (he has a few times)
Yeah, when I was younger I lent $130 to a friend--a lot of money when you're 17. I never got it back. But guess what? I won because of that. It cemented in me the opinion that the guy was a deadbeat, so I would advise everybody to lend money to your friends. If they don't pay you back you've learned something important.

With family, however, well you are stuck with them whether they pay you back or not, but with family I would not lend money unless they _needed_ it. ie. I wouldn't lend my brother money for a PSP, but if he couldn't pay rent I would give it to him. It would be up to him to pay it back or not, but I'd not look for it. My parents have "lent" us money in the past, and normally it was just a gift with no real expectation of payment unless we volunteered to (which we sometimes did!).

 

Adica

Golden Member
Dec 11, 2004
1,541
0
0
I 100% agree with the majority. DON'T LOAN MONEY TO A FRIEND

My good friend was in need of a car in 1999, I got a new one, so I sold her mine.
We agreed she would pay me $1000.
5 months, $200 per month.

I got $100 dollars 3 times (to this day she owes me $700)
I lost a friend too.

If you have already commited to this loan, try to get out of it, or consider it a gift.

BTW my husband is still trying to collect $2500 from a "so-called friend" too.
 

Cal166

Diamond Member
May 6, 2000
5,081
8
81
Yes its truely a bad idea to lend friends a large amount of money.

That said, anyone want to buy a Title to a nice 2001 Honda Accord with Less than 50k Miles, I got the title as Collateral.

So far she only paid me back $250 out of $x,xxx.
 

wondersteve

Senior member
Mar 15, 2003
805
0
0
Originally posted by: FoBoT
no it doesn't matter, he will either pay you back or not

just type up something saying how much you loaned him, how much interest, when he has to make payments, just cover the basics , make 2 copies and you both sign both copies


then wait and see if you ever get a nickel back

also have a witness sign it. 2 would be better if you had to to him/her to court.
 

Toasthead

Diamond Member
Aug 27, 2001
6,621
0
0
yeah only do it if you are willing to accept the possibility that you will never see it again. It happens too much.
 

randomlinh

Lifer
Oct 9, 1999
20,846
2
0
linh.wordpress.com
damn.. obviously there are some friends I wouldn't loan more than $5 to.. but others... I would do what I can. I know they wouldn't ask unless it were a desperate situation. I wouldn't quite say never.
 

Yossarian

Lifer
Dec 26, 2000
18,010
1
81
Originally posted by: Cal166
Yes its truely a bad idea to lend friends a large amount of money.

That said, anyone want to buy a Title to a nice 2001 Honda Accord with Less than 50k Miles, I got the title as Collateral.

So far she only paid me back $250 out of $x,xxx.

I'll give you $250 for the title. Signed over to me, of course.
 

marvdmartian

Diamond Member
Apr 12, 2002
5,434
20
81
All good advice here, especially when people are telling you to not expect a penny back. Figure it as if you get paid back, it's a bonus. If you don't, you've learned a valuable lesson. Shoot, I've been told that even in the bible it says not to loan money and expect it back, so I figure that's good advice (and anyone who wants to question me where it says that in the bible, read the part where I said I've been told, then go look it up yourself!! ).

That said, I've probably lent out over $20k in the past 20 years, and haven't gotten a penny back. What I do have is people that feel so guilty about it (without me ever saying a word to them either) that they'd probably kill for me if I pushed them to do so. It is rather nice, though, since a couple of them are automotive mechanics, and I haven't had to pay for a single repair on my truck in the past 5 years!!

What I always tell people is that I don't expect to be paid back, and why. If it happens, great! I can always use more fun money in my pocket, and take whatever is given to me to play with. But when it doesn't happen, I'm neither surprised nor angry about it. Most of the time I "lend" money, it's to people that I know can't pay me back, but I also know really need it. I always tell them to "pay it forward".......when the day comes in their life that they're comfortably well off, and can do something similar for someone else that's deserving of it, then do so, without question or pause.......and tell that person the same thing I just told them. Besides, ya can't take it with you, right?
 
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