Help with lending money to a friend?

wonder09

A friend has asked me to lend him quite a large some of money (around 2000) as he knows I have recently some some assets, and he is strapped for cash at the minute. He has told me he wants to pay me monthly and will give me a little back on top for the favour. I dont really want to lend him the money, as I know its unsecure but he is really on the case about it. Is there any sort of legal document I can sign with him? Also does anybody know, I am registered as self employed so would I just put the extra money back from him down as untaxed intrest? Many thanks

bristol_pilot

'Just say no'.

Basically the law is on the side of debtors, repayment is optional. You will lose both your money and a friend. Not that this person is much of a friend anyway, only a cad would try and tap a friend for a loan.

Mikek_3

A real friend would not ask.It sounds like he getting ready to **uk over with the little bit extra he says he will pay you, trying to sweeten you up.Tell him to save up the monthly payments till he has his own £2000.

Mike

faithcecilia

I lent money to friends a few years ago. Several months later I asked if there was any chance of some of it back, they explained they couldn't afford it, so I wrote it off. It was a choice between friendship or money, and I know which I value more. Can you afford to lose either the money or the friendship? If not then tell him you cannot lend him the money.

[Deleted User]

Just refuse.

duggie1982

I also lost a friend and lots of hassle lending money to a friend as they did not pay back. Still sickens me to this very day.

My advice - Dont do it unless you are 100% sure they will pay back

Voyager2002

I suggest you show him Zoopla. Even better. introduce him to this site so that he can see all the advice given about how to borrow money.

CHR15

You answered you own question....

He is strapped for cash... ergo.. he has no spare cash to repay the money he owes.

Give it to him as a gift.... or tell him to Do One!!

olly300

Just say "No". If the "friend" goes on say they are not a friend as they would seek alternative sources then rather tap someone just because they have a bit of good luck. Also state you need the money for something else as being self-employed means that your cash flow can suddenly change. If they still go on then start hanging around with other people.

If you do a search on these boards you will find people who have lent "friends" and family money who have not been paid back and have resorted to debt collectors and court action.

With "friends" they tend to disappear owing the money so effort has to be taken to trace them with their family refusing to say where they are. Once they are traced they deny that the money was lent to them.

ILW

wonder09 wrote: »

A friend has asked me to lend him quite a large some of money (around 2000) as he knows I have recently some some assets, and he is strapped for cash at the minute. He has told me he wants to pay me monthly and will give me a little back on top for the favour. I dont really want to lend him the money, as I know its unsecure but he is really on the case about it. Is there any sort of legal document I can sign with him? Also does anybody know, I am registered as self employed so would I just put the extra money back from him down as untaxed intrest? Many thanks

If that is the case, he is not a friend, he is a parasite and you have nothing to lose by telling him no, you are not a bank.

olly300

OP this thread is an example of what happens:
http://forums.moneysavingexpert.com/showthread.html?t=2038187