Lending some money to an acquitance

andreauk2009

Hi there,
I hope you can provide genuine opinions on this matter.

I've an aquitaince, colleague of mine, who is in need of some money.
By principle I never ever lent money to anybody, but I know his story and willing to help.

What should i do to protect myself and ensure that at a certain point I'll be returned the credit?
Would a statement from him with his signature be enough?

Things will be difficult as this person is going to quit the company for a new job soon.

Thanks fur your advices.
Andrea

Money_maker

Either just give it to him and assume any repayment to be a bonus or say no. Why are you taking his financial problems on your shoulders? Read previous posts for those who have done so and regretted it so bitterly.

DCFC79

I can see it not ending very well for you.

Are you totally sure you want to loan the money ?

Wish you luck if you do lend it to him.

bargainbetty

You don't even refer to this person as a friend. You know what you have been told, and in a very short time your only genuine connection to this person will be gone.

You can do very little to protect yourself. You can have them sign a document saying they owe you money, but if they don't repay then you will have to chase them through courts to get it. Even a judgement against them can result in them agreeing to pay you back at some ridiculous amount per month if they decide to get nasty.

I would stick to your original principle of not lending it, unless you are absolutely sure that you can afford to lose it.

And ask yourself this - why is the person unable to get the money from his bank, family or friends? Why are you the only person willing to give a loan? I've lost loaned money to people I love and used to trust. Why would you risk this for a person you don't even call a friend?

Gambler101

Either give him the money as a gift, or if you dont want to do that then DO NOT lend the money.

Chances are you wont get it back, so unless your happy to help him out, say no.

Gaz83

andreauk2009 wrote: »

What should i do to protect myself and ensure that at a certain point I'll be returned the credit?

Absolutely nothing.

You can get him to sign whatever promise you want. If he stops paying, you can take him to court and trash his credit rating. But if the reason he's stopped paying is because he doesn't have any money, there's nothing even a court can do. No-one can be forced to pay what they don't have.

[Deleted User]

andreauk2009 wrote: »

Things will be difficult as this person is going to quit the company for a new job soon.

Is that why he's an 'aquitance'?

Money_Rollercoaster

Don't lend him your money. Force him to join the MSE forums so he can be knocked into better financial shape the right way.

enthusiasticsaver

Don't lend it. This person is obviously a bad risk as presumably he is unable to get credit through normal channels (0% credit cards), he is leaving his job so how do you know you will even be able to maintain contact with him? A statement with a signature will only acknowledge you have lent it to him. It is unenforceable should he not have the money to repay you and may involve court proceedings, solicitors which would be time consuming and expensive.

Lend it to him by all means but don't then expect to be repaid. Read the thousands of threads on this forum alone of all the people who lent money and regretted it and those are just the ones willing to post about it.

MrsTinks

Don't do it... oh I think that's been said already

You can write up documents until you turn blue, but if he has no assets then your chances of getting money back is slim should he not pay you back. If he has assets (like serious bling) then buy this off him for a reduced cost (to ensure you can get your money back if you need to sell it) and when an agreed time period is up and he should repay you then he can simply buy the items back INTEREST FREE! Do not go down the road of interest as you will need to declare any money made as income. Either do all of this as a favour for free or walk away. And if you do do it then get any items independently valued as prices realistic to what you would get for them second hand.

-taff

Colleagues don't usually ask other colleagues for money unless they've exhausted every other avenue already.
Don't do it..