Loan a friend money?

[oogabooga]

As people have said... If you loan him money, make it a real loan. Paperwork, the whole works. Otherwise it'd better be a gift, because I know I've never gotten money I've loaned to friends as a friend back. Which is fine since I figured it'd be a gift. Fortunatley for me >< it has worked both ways where in my moment of need a friend 'gifted' me money.

 

[yowolabi]

Originally posted by: benchiu

Originally posted by: Stunt
I would have a written contract...although being here on a green card (from Pakistan) could be a risk.

I would make the payments due the day after his pay (i know his pay days)...hehe.

Written contracts are a joke. A bank reporting him can affect his credit rating. You can't do anything to him except wave your piece of paper at him, or take him to court. Sure, you probably could get your contract enforced in court, but if you even have to think about going down that route, it's already not worth the hassle over a measly 1k profit.

Exactly. The problem with loaning friend's money is that they don't treat you as seriously as the other people they owe money to. And even guarding his credit rating wasn't enough to stop him from ruining his credit once.