nemesis222
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 03 Dec 2004
|
| to lend or not to lend? |
 |
|
question... i offered to lend money as a loan to my friend. we're talking around 1500. i trust her and all, but still it's a lot of money. i made some bad decisions about lending money in the past, so naturally i'm careful. i just don't trust anyone completely anymore. what kind of guarantee should i ask her for, without offending?
|
Fri Dec 03, 2004 6:53 am |
|
|
BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
|
The bottom line on this question is: You can have debtors, and you can have friends. Your friends shouldn't be your debtors, and your debtors shouldn't be your friends.
With that said, I understand that you want to help this person out. If you go ahead with this loan, assuming that you want to keep your friend, you should, in your mind, consider it a gift that you may never see again. As far as assurances, you could get her to sign an agreement to pay you back just like a loan from a bank. This is likely to put a strain on your friendship (see above).
An alternative would be to help her find other sources for this loan, but I would not co-sign on a loan with her if I were you, for the same reason I wouldn't loan money to a friend without assuming I'd never see it again.
I've just seen this kind of arrangement go bad too many times.
Hope this helps.
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
|
|
Fri Dec 03, 2004 12:36 pm |
|
|
xboxundone
Senior Member
Cash: $ 67.83
Posts: 796
Joined: 19 Sep 2004
|
|
|
|
quote:
Originally posted by BlankenshipFP
The bottom line on this question is: You can have debtors, and you can have friends. Your friends shouldn't be your debtors, and your debtors shouldn't be your friends.
With that said, I understand that you want to help this person out. If you go ahead with this loan, assuming that you want to keep your friend, you should, in your mind, consider it a gift that you may never see again. As far as assurances, you could get her to sign an agreement to pay you back just like a loan from a bank. This is likely to put a strain on your friendship (see above).
An alternative would be to help her find other sources for this loan, but I would not co-sign on a loan with her if I were you, for the same reason I wouldn't loan money to a friend without assuming I'd never see it again.
I've just seen this kind of arrangement go bad too many times.
Hope this helps.
I agree. If you want to just give her the money that is the best option and if she gives it back great. but otherwise if you loan her the money then it is just asking for trouble turn on judge judy or judge joe brown half the cases on those shows are EX friends who lent each other money. Best bet would be to help your friend find a bank or similar that will loan her the money...
Realize if you would want to cosign you need to realize that the debt is yours. Meaning if she bails they come after you for the money. I do not suggest cosigning for something.
|
|
Fri Dec 03, 2004 12:58 pm |
|
|
ku
Member
Cash: $ 4.37
Posts: 18
Joined: 03 Nov 2004
|
Maybe you can get your lawyer to write a contract or something. Maybe charge interest -- 7% per annum or something -- to give your friend an incentive to pay back asap.
|
|
Tue Dec 07, 2004 1:31 am |
|
|
xboxundone
Senior Member
Cash: $ 67.83
Posts: 796
Joined: 19 Sep 2004
|
quote:
Originally posted by ku
Maybe you can get your lawyer to write a contract or something. Maybe charge interest -- 7% per annum or something -- to give your friend an incentive to pay back asap.
Once you loan a firend money you should kiss the friendship goodbye UNLESS you happen to have a friend that pays you back in the time you expect otherwise the friendship is gone!!!
|
|
Tue Dec 07, 2004 1:48 am |
|
|
kingston
Member
Cash: $ 2.69
Posts: 12
Joined: 14 Dec 2004
|
Why can't she apply for a personal loan or put some asset up for collateral to obtain the money? Where is her family it would be more comfortable for her to borrow from her family one has to wonder why you wouldn't turn to family first or do they have some apprehension about lending her money?
Should decide to give her money make sure you have a note that stipulates the amount repayment terms etc and have her sign it so in the very least you can at least take her to small claims to recoup the money should in case she happens to forget she owes you money.
Why does she need this money it better not be for cosmetic use.
Be careful and make sure you are not putting yourself out financially in other words don't bank on the repayment.
Good Luck
I offer my 2 cents
Mortgage Consultant
kingston111@netzero.net
|
|
Tue Dec 14, 2004 5:59 pm |
|
|
Jay
Member
Cash: $ 0.04
Posts: 10
Joined: 29 Mar 2004
|
| Re: to lend or not to lend? |
|
|
quote:
Originally posted by nemesis222
question... i offered to lend money as a loan to my friend. we're talking around 1500. i trust her and all, but still it's a lot of money. i made some bad decisions about lending money in the past, so naturally i'm careful. i just don't trust anyone completely anymore. what kind of guarantee should i ask her for, without offending?
I agree with the post abouve about it being a gift. cuz really friends mean more to me then money... thats my take.
|
|
Mon Dec 20, 2004 6:46 am |
|
|
domskynetlabs
Full Member
Cash: $ 21.09
Posts: 95
Joined: 24 Nov 2004
|
lending money to friends was the worst mistake i ever made. you compromise the friendship so bad and have a hardtime not feeling like youve been taken advantage of when they prioritize creditors over you because they know "youll understand"
|
|
Wed Jan 05, 2005 2:08 am |
|
|
SnapThat
Senior Member
Cash: $ 26.48
Posts: 235
Joined: 07 Nov 2004
Location: Illinois
|
quote:
Originally posted by ku
Maybe you can get your lawyer to write a contract or something. Maybe charge interest -- 7% per annum or something -- to give your friend an incentive to pay back asap.
I strongly disagree with this. Charging interest is not a good way to loan friends money - either consider it a "gift" that you may get back, or just say "No" (and give an alternative - she is your friend). The main issue here is not trust - if she's a friend, she'll obviously do her best to repay you - but it is how financially sound she is. What is the loan for? Does she need it because she is in financial trouble or is she trying to start some kind of business venture? If it's the former, how likely is she to pull herself out? If it's the latter, how likely is the venture to be sucessful?
JavaHive - Get Paid to Post! | Inbox Dollars
|
|
Wed Jan 05, 2005 2:17 am |
|
|
|
