Everyone has friends, acquaintances, or relatives that borrow money. What should you do – lend money or not?
How it happens
Maria lent money to her friend who had lost her job. She lent it without thinking too much and without paper registration, although the sum was quite large. After some time, she learnt that her friend became obsessed with loans – she had three debts to pay to banks, and she had borrowed money from several other relatives. Meanwhile, Mary herself had to work overtime to make ends meet. Needless to say that Mary felt like a fool when she learnt that her friend was living happily on her money. Moreover, she was living with an unemployed man, she bought a plasma TV, went to the seaside… and was not going to pay back the debt!
Should you lend money?
Psychologists, as well as shamans and sorcerers, unanimously say that you should not borrow or lend money. The former explain it by the fact that debt is a great stress for both the debtor and creditor. The latter refer to the karmic laws of energy circulation.
So should you lend money?
- The amount asked is small.
- You have “extra” money that you are not sorry to lose.
- The reason why a person borrows is really urgent, and you sincerely want to help.
- You are not sure that you will be paid back.
- You need money yourself.
- You afraid that your relationship may be spoilt because of this debt (it often happens when a person does not have the possibility to repay the debt and does not want to see the person to whom he/she is indebted).
- You are asked for a very large sum, which you cannot lend without facing certain disadvantages (early withdrawal of the deposit, losing interest, etc.).
- A person refuses to give a receipt and wants “to do without papers.”
We see that there are more arguments against lending money! However, it is up to you to decide.
They say that you should lend only the amount which you are ready to part with. Do you agree to part with your money, even for the sake of friendship?
If you feel you are not ready to lend money, but you cannot refuse at once – take some time to think! You will surely come up with reasons for it;) However, your refusal must be reasoned so that the person is not offended. As an option, tell him/her honestly that you want to save the relationship.
How to lend money properly
If you want to be paid back, provide a guarantee. A debt not registered on paper is almost a gift that may not be returned! After all, you will not be able to present an oral agreement as evidence in the court, or remember the exact date, time and place.
There is a loan agreement. You can find a sample on the Internet, print it out, and fill in.
If the debt is significant, you can ask for a bail. Usually it is a thing that can be sold quickly if necessary and that does not lose its properties with the time. Jewelry is the most suitable for this.
The most common variant is a receipt. It is quick and easy. A receipt can be written in any form, it is not necessary to notarize it, and it will serve as a basis for the suit in case of non-payment.
You can combine all three options. Why not, if the sum is significant?
How to write a loan receipt agreement
All receipts must be handwritten by the one who takes a loan. The receipt must contain the following information:
- Name, address and identity of the one who borrows.
- Name, address and identity of the person who gives a loan.
- The amount of debt (in words and figures, to avoid ambiguity).
- The period for which you borrow, the date of return.
- If there is any interest.
- What happens if the debt is not returned or is only partly returned at the appointed time. This is a very important point, which is nevertheless often omitted.
- Date and place.
What if the debt is not repaid?
- First remind the debtor of the repayment. Maybe he got too busy and forgot about it?
- If the loan has not been registered on paper, you only have to hope for another person’s honesty.
- If there is a receipt, but the debt is not repaid, you can go to court. A good option is going to the police and accusing the debtor of fraud. They say that the proceedings run much faster in this case.
Should you borrow money?
When you urgently need money, the first option is to borrow from friends. What is it like to be on the other side of the debt obligation?
Major tip: borrow money only if you are sure that you can give it back. Banks are insured reliably in this regard because they do not give loans unless they are sure about the borrower’s solvency. What about your friends?
It is very bad to borrow in order to repay the previous debt. Is it possible to feel free when you are up to your neck in debt?
Why not to learn to save? Of course, it does not sound very appealing but can solve the problem of lack of money, loans, and debts.