Lending money to friends & family

Woodyrocks

I have been on the thread from the early days and I am ashamed to admit that I have done it again

My lil' bro came round last w/e and is looking to borrow 8K towards a car and it was all I could do to keep my mouth shut. I refuse to get into it with family should things go wrong so would you believe that I turned around on Wednesday, after receiving a call from a new friend, and said yes, to lendin her £200. It is only a small amount and yes, if I didn't get it back I would be fine but I am still mad at myself for going 'there' again after all the issues WE all have had. The money is meant to be paid back next Wednesday and hopefully it will be and I will not need to bring it up here again...

harryhound

Ms.Island wrote: »

Hello

Sorry if this was mentioned already.

Basically I am looking for a template of Loan Agreement.

To be more precise, I added my friend as an additional card holder of my credit card account, because he had bankruptcy about 5yrs ago, hence cannot get any accounts.

I don't feel he is much of a friend now and want to cut him off.

He was the only one using the card (as I use my other one for), and it all shows on the statements (as he's got separate card with different number on it).

He is always taking care of minimum payments and a bit more, but it is around £600 in credit atm.

I also want to transfer the money onto another card, as it offers interest free credit for like 6 months.

Could anyone advise me of a template (or any other advice) to deal with this.

(Just recently I found out that it's me, who is liable for whatever he borrows and I am a student with debts already (( so this doesn't help at all)

Thank you for reading and I will be grateful for any advice!

Step one analyse the expenditure and see if you can work out if the debtor is living within his means, this could be heading for multiple bankruptcy. Debt is a drug, just like nicotine, it messes up the addict's brain chemistry.

If the answer is no, as an unsecured creditor you are going to have to kiss good bye to the 600 quid and cancel his "authorised signatory" status PDQ.

If the answer is yes (fingers crossed) you are going to have to go and see him and tell him it is time to grow up and be a man and stand on his own two feet. Obviously that message will initially need to be put tactfully.

If possible get some sort of security in both situations. See my remark above about cheques - a blank signed cheque could be useful, after all that is what you have given him in the form of a plastic card.

brownbabygirl

Woodyrocks wrote: »

I have been on the thread from the early days and I am ashamed to admit that I have done it again

My lil' bro came round last w/e and is looking to borrow 8K towards a car and it was all I could do to keep my mouth shut. I refuse to get into it with family should things go wrong so would you believe that I turned around on Wednesday, after receiving a call from a new friend, and said yes, to lendin her £200. It is only a small amount and yes, if I didn't get it back I would be fine but I am still mad at myself for going 'there' again after all the issues WE all have had. The money is meant to be paid back next Wednesday and hopefully it will be and I will not need to bring it up here again...

please let us know the outcome

theartfullodger

If you need to trace someone and the usual means don't work (asking anyone who knows them, 192.com, employer, council, postman, etc, neighbours..) then collect ALL the info on them you have (name, other names, DoB, description, previous addresses, employer/previous employers, who married to, any kids, NI number (any payslips lying about??) then contact the various people who go hunting.

Certainly the classified adds in "Private Eye" have people who operate no-find-no-fee. I used them for 2 people, worked both times, £99 each I think.

harryhound

I wonder if they are illegally using the Police National Computer?

There is a thread on here somewhere (sorry I've not got the time to look for it, it was probably 18 months ago, that I last saw it)
I used it to search for myself - I was quite surprised to realise how much I could find out about myself and I don't have a web site.

tekkiegurl

whenever people are borrowing money to you make sure that they only an amount that they can pay. so you won't have a hard time getting it back

ALIBOBSY

Just been reading some of the sad stories on here and thought I would add my 2p worth. Something my Dad always said stuck with me. Don't lend any money you can't afford to walk away from if you really had to. We have borrowed occasionally from my mum and dad, but always paid it back and the most was around 1k when the boiler went bang lol.
I have lent small amounts like £20 or so to friends and colleagues most paid it back one didn't.

I only wish I had taken note of his advice not to borrow too much from the banks either rofl. Least we are nearly paid off now.

good luck to ev1
ali x

schoolrunmum

My two-pennorth.....we lent a friend 6K about 5 years ago...never had a penny back. He's moved abroad,and sends the occasional email. If I email back asking about the money the communication stops..never again..

kilgore1080

Just thought I'd post with my own experience of this.
A few years ago I stupidly consolidated my debts into a bank loan, as I was looking into it I found that my sister & her boyfriend desperately needed £3500 to buy a car. They asked me if I could extend my loan as they couldn't get one themselves. I was dubious about this anyway but their relationship was pretty new which made me even more concerned. So I agreed to loan my sister the money not him and that they would pay me back £100 a month until it was paid back. Long story short after a couple of months he vanished out of the country dropping my sister in a massive amount of debt but to her credit she has continued to pay me back regularly (with the odd nudge every now and then) and we agree that if she needs a break from the repayments for a month (xmas, kids birthday) then as long as she lets me know I can manage. To date she's almost paid it all back to me, and yes I know I'm paying more interest to the bank than she is to me but I don't mind as I earn more than her and can afford the difference.

She's changed how she manages her money now which is great, but I don't think I'd lend again as it has put a bit of strain on our relationship as my mum's had to get involved a couple of times to keep her on track. But fingers crossed we'll be ok in the future.

louise56489

I don't mind lending to friends and family as long as I don't have to keep chasing them for the money. It is always nice when they give you the money back when they say they will.