Lending to friends

[robby]

Has anyone ever lent money to a friend with a contract for repayment? Did you have any troubles? How much did you charge in Interest?

[terry1156]

I have no experience lending to friends with a contract. but I am of the opinion that it is a bad idea all the way around. It's a sure fire way to ruin a friendship. I would think long and hard before going through with it even if there is a contract.

[moneyrant]

Don't do it. Only cause problems.

[john849]

I also would suggest that you don't do it.

[midnight]

I have lent to friend without a problem before, but never a large amount. I think you need to be very careful with family and friends since it can ruin relationships.

[rabbitfoot]

I posted in these forums a few months ago that I had a friend ask to borrow $500. While I value her friendship, $500 is a lot of money for me. I thought that she would pay me back, but if she didn't, I wouldn't want to lose the friendship over the money which I am sure would happen.

After listening to the advice in the forums, I decided not to lend her the money. She was upset with me at first, but we worked through it and I think it was the right decision.

[john849]

That's the problem. People don't mind lending money but when it comes to paying it back, it's takes ages to receive your money.

If someone is seriously in debt and they want to lend money, what's the chances that they won't be in debt when it comes to paying it back.

[globetrotter]

Lending money is a very sticky subject. We ended up loaning about $5,000 to DH's brother and we still haven't gotten it all back. I doubt we ever will. But we decided before we gave it to him that we weren't going to make an issue of getting it back (he needed it for medical treatment). If we did make it an issue, it would make all the family quite uncomfortable I think.

If you have a contract would you ever go to court to enforce it? I think that is the question you need to ask. If you would, is it really a friend that you should be lending money to and if you wouldn't do you really need a contract?

[robby]

Does anyone know where I could get a sample contract for lending money?