Loan Agreement Between Friends Reddit

I don`t know how close you are friends or what are the normal prices in the Philippines, but it`s a hell of a lot of interest. I borrowed money from friends and relatives and borrowed money from family… almost always with interest. But you have to know the person well and have a certain amount of confidence… and the worst case of being willing to lose money. Even friends don`t charge friends interest. So I guess he`s not really a friend or you`re pretty ruthless. $10, 000 in private credit to a friend. What kind of paperwork do I have to get him to sign? In general, we warn with r/personalfinance against lending money to friends.

A. The relationship often changes from friend-friend to lender borrower and B. often it is not the smart use of your money, and you can lose some of your money on it. You can do it, but you shouldn`t. Very often, these things don`t end well. I lost $3,000 that I paid for the wedding of someone I never recovered because I trusted the friendship and character of the person if I didn`t have it. In the unlikely event that one or both of us die while the loan is outstanding to ensure that the rights and/or obligations of the loan are transferred into that party`s estate. Wouldn`t a lawyer cost about as much as the total interest rates on a 3-year loan from a licensed lender? Set an explicit statement that this is a No Gift loan, set the term of the loan and the amount will be repaid monthly and from what start date the repayments will begin. I`m going to make a very big loan to a parent. I have no doubt about their ability or honesty to repay (so don`t advise me on this aspect). I would like to write a loan contract for two purposes: I decided to print and sign a loan contract, in case something bad happened.

Yes, you can. But it is a very effective way to destroy a friendship. If he has his hanko or finger pressure on it, it should be binding. But never borrow money from your close friends if you can`t afford to lose it or trust it enough without a contract to get your money back. Are you saying that the mortgage agreement may prevent you from using someone else`s personal loan to repay the principal? My wife is a teacher and has a friend who recently destroyed her 10-year-old car. Because of age and age, the payment of insurance is not much more than the deductible. Because she is a teacher, she does not make much money. She is single and her income also helps support her mother.

We offered to lend her money (she didn`t ask) to help her get a new car. My wife and I thought in the neighborhood of 500-1000 dollars, but never set an amount to the friend. After thinking about it for a few days, she asked for $2,000 and agreed to pay $300. We have 20k in the bank, but have a lot of installment debts (mortgages, auto loans, student loans, but no credit card debts). We can afford to go far from 2k, but we would prefer to be refunded (obviously). We offered totally by the desire to help a friend and make this interest free. Like you, I can`t care about my friends or family (unless I secretly hate them). I do not borrow large amounts, and I treat it like charity. In your head, if you want to keep your friendship, you can cancel the money.

Stay on his advice, never lend money to someone. Never. I owe money to some friends, and the only reason I pay them is because I can borrow again in the future if I need money. take your advice and never lend money to someone. If you ever do, you expect never to get paid. First of all, there is nothing wrong with lending to a friend. There is no good reason to categorically oppose it. Depending on the circumstances, it may or may not be a good idea. How well do you know her? Is it scaly? Are there good reasons why you think she can and cannot take her responsibilities to you seriously? Is $200 or $300 a reasonable payment given their salary and