Lending money to friends & family

prestonisidore

Letting borrowed money with out giving they signature considered as a verbal settlement. I think the best you can do is to have a good agreement with the lawyer so that what ever happen after your agreement they will make a way to pay the money.

John_Pierpoint

Just ask the borrower to sign an undated cheque and tell them to trust the lender.

That concentrates minds and gives the lender a promise to pay.

That said there is no way to get money out of a straw man - we don't send people to jail fort not paying their civil debts any more.

prestonisidore

Xbigman wrote: »

Have you got anything in writing or even a receipt, or maybe witnesses. If not you are unlikely to get your money back if he doesn't want to pay.
Regards



X

Seriously, if we talking about money matter always make a positive thing that your money were always a money. And As far as I know, some of the people are making a deb't. I think the best you can do if you are a money lending just make sure that you have an official receipt and make a signature from the borrower because encase of what happen you have a right to file a case if the borrower would not pay the money.

marineli5141

Xbigman wrote: »

Have you got anything in writing or even a receipt, or maybe witnesses. If not you are unlikely to get your money back if he doesn't want to pay.
Regards



X

Hello Xbigman
Yes I am totally agree with your point of view.If there is no one for the witness or any other kind of evidence and paper work then you can't get your money back!!!

funky348

Hi all,
I have a query about a loan agreement with an ex.
I helped an ex out a while back lent £9200 through a balance transfer to my credit card which she still pays. Ive recently been made redundant and have a bit of money to spare. Im willing to lend her the money to pay off the debt and in turn she will transfer £153 a month to my savings account. That way she wont have the huge interested charges.
How do i go about setting up a loan agreement is there any templates out there?
Are the loan agreements legally binding? Im sure everything will be ok but for peace of mind...
Or anything else i should know please feel free to reply or message me.

Cheers

Phil

funky348

From above message ..... Do i need a witness to sign as well?

gb12345

funky348 wrote: »

Hi all,
I have a query about a loan agreement with an ex.
I helped an ex out a while back lent £9200 through a balance transfer to my credit card which she still pays. Ive recently been made redundant and have a bit of money to spare. Im willing to lend her the money to pay off the debt and in turn she will transfer £153 a month to my savings account. That way she wont have the huge interested charges.
How do i go about setting up a loan agreement is there any templates out there?
Are the loan agreements legally binding? Im sure everything will be ok but for peace of mind...
Or anything else i should know please feel free to reply or message me.

Cheers

Phil

Does your ex actually have any assets that you could try and claim if she suddenly stopped paying you back in 6 months time? If not then any agreement is really worthless as you can't get blood out of a stone.

And you do realise that her current debt is actually your debt as it is on a credit card in your name - she stops paying and it will be your credit history that gets the default on it.

maghater

funky348 wrote: »

Hi all,
I have a query about a loan agreement with an ex.
I helped an ex out a while back lent £9200 through a balance transfer to my credit card which she still pays. Ive recently been made redundant and have a bit of money to spare. Im willing to lend her the money to pay off the debt and in turn she will transfer £153 a month to my savings account. That way she wont have the huge interested charges.
How do i go about setting up a loan agreement is there any templates out there?
Are the loan agreements legally binding? Im sure everything will be ok but for peace of mind...
Or anything else i should know please feel free to reply or message me.

Cheers

Phil

Cheapest and easiest way to deal with it, especially if you are reasonably certain the other part wont default is just to draw your own agreement up, with your, and exs names, and addresses plus signatures, and date. Get it witnessed by a couple of friends (best if each party chooses one), need their addresses aswell. Not a solicitor, but if you each keep a copy of that, aswell as records of transactions, that should be enough to keep the smalls claims court happy if things go wrong

StuC75

Are they making the payments directly to the CCard for you ? or do u receive the payment and then pay off the card?

How much is the balance remaining? whilst its generous that you intend to save them interest - you are costing yourself the possible interest that you could gain in the meantime.

Have you found alternative employment since? what if it takes longer \ falls through and you find that money would have been usefull..

Assuming the other person is paying monthly and paying the balance off (its not increasing), I would just keep the equivalent money saved separately knowing that if they stopped paying, the debt would be still your responsibility and could then cover it off..

So in short, unsure why you would be so helpfull \ obliged..??

funky348 wrote: »

Hi all,
I have a query about a loan agreement with an ex.
I helped an ex out a while back lent £9200 through a balance transfer to my credit card which she still pays. Ive recently been made redundant and have a bit of money to spare. Im willing to lend her the money to pay off the debt and in turn she will transfer £153 a month to my savings account. That way she wont have the huge interested charges.
How do i go about setting up a loan agreement is there any templates out there?
Are the loan agreements legally binding? Im sure everything will be ok but for peace of mind...
Or anything else i should know please feel free to reply or message me.

Cheers

Phil

martymcauley

Hi, I am sure that this has probably been discussed in this thread somewhere but it is rather huge and I would struggle to go from one end to other without jumping off a bridge. I am wishing to buy a house that is, what I consider, a bargain. Have had it checked and it seems fine. My friend has offered to lend me the money , interest free, to purchase it before I sell my own. The house needs some fairly major cosmetic work :windows doors eplaced etc so isnt just ready to move in. Is there any tax implications if he loans me the money for a few months till I sell my own? It is temporary and interest free.