Comments on: 8 Rules For Borrowing Money From Friends And Family

By: christine campbell

christine campbell — Wed, 10 Aug 2011 19:27:41 +0000

I borrowed from my mother with a promissory note @6% simple interest, when my mother was gifting to her children a sum, they refused to honor my promissory note, they (older sister & brother came up with this idea) deducted the borrowed amount plus 8% compounded interest, saying it was the potential the money could of earned if it had still been in my mothers pot. The interest was more than the loan, the lawyer I spoke to asked me if my family has feelings for me that I maybe unaware off. And here I thought it was love all along. Don’t borrow from family, you will regret it for the rest of your life. C

By: im here

im here — Wed, 11 May 2011 19:23:57 +0000

Friends shouldnt loan or borrow money but I think its sad that 2 people who are good friends would let money destroy their friendship. Why cant both parties just be honest and honor their agreements?

IF someone is going to borrow money from a friend and a friend CAN lend it (as opposed to GIVE it), then I think this is a good article to follow. Another thing I would add in is to put everything in writing. The party who is paying the money back should also cover themselves as well.

Each time they make a payment, there should get a receipt or have the ‘lender’ sign something saying they paid. This should be agreed upon BEFORE the money is loaned and the friend should let the lender friend know that they will want receipts for payback and will sign a form saying that they DID borrow the money.

People have faulty memories and it’s easy for someone to forget that you’ve paid them back this month. Professional lender services can track when you’ve paid back but friends just handing money over might forget it in their busy lives. So it’s best to keep records that you’ve paid back. This way IF a misunderstanding ever arrives, you can just show them the document and pinpoint it to the exact day and time.

It would seem kinda strange but trust me it’s better than not proving you made a payment and being seen as a leech or thief. Trust me the person who forgot that you paid will feel awkward if you cant prove it because all they will be thinking is that you’re trying to screw them over. They will feel MUCH better when you prove that it’s been done. Don’t make them feel like it’s their fault they forgot either.

Lastly, it should be confidential between the two. The last thing friends need is other friends butting in and putting in their two cents. Trying to convince the lender that they should have gotten more interest or telling the borrower he got screwed on the interest rate. Even spreading rumors about how one is bad-talking the deal. When information leaks, people ALWAYS interfere. Whether they have good or bad intentions, they tend to always put their two cents in and it DOES affect the parties involved.

All in all, If both people agree to an agreement and follow their ends of the deals with a paper trail, AND keep it between the parties involved, I don’t see how a friendship would be in jeopardy.

By: Steve Rabago

Steve Rabago — Sat, 10 Jan 2009 05:08:36 +0000

Try ZimpleMoney.com! You can manage loans for free or use a low cost product to keep your family & friend loans professional. If you’d pay a bank why wouldn’t you pay family?

By: The Studenomist

The Studenomist — Fri, 09 Jan 2009 13:31:12 +0000

I don’t want to judge anyone’s situation but I totally agree with the last sentence. Maybe it’s just my family but I know for a fact I would hear smart ass comments about the money for a long time. I would rather get a loan from a bank because at least they won’t judge me or make ignorant comments.

By: Dream Meanings

Dream Meanings — Fri, 09 Jan 2009 04:43:43 +0000

The worst is borrowing money to pay off debt where they end up being more irresponsible and owning more debt. I do not understand why people tend to think that actually solves their initial debt problem.