The borrower agrees that the money lent will be repaid later and possibly with interest to the lender. In return, the lender cannot change his or her mind and decide not to lend the money to the borrower, especially if the borrower relies on the lender`s promise and makes a purchase expecting him or her to receive money soon. Debt – A promise of payment made by a debtor and a creditor lending money. Money can even create a rift between bloody relationships; Let alone friends. So if you`re lending money to a friend or borrowing it, think about the relationship first. Because you can make money at any time in your life, but once the friendship is ruined, it will take you years to start again. Therefore, you need to take care of money matters, friends putting aside your friendship and acting as a businessman. If you don`t want to lose your friendship, design an official credit agreement that will add the borrowed money, interest rate, fine, and payment data. Next, you need to mention how the money is repaid, whether there is interest or whether there is no interest.
If the money is loaned for a number of periods, indicate the date of each period at which the rate of the borrowed money must be paid with interest or without interest. In addition to the date, you must also indicate the method of payment such as cheque, cash, change of debt and traveller`s cheque. It is also worth talking about the amount of the fine if the borrower will not repay the money on the due date. Before writing the agreement, talk to your friend and ask how they will repay the amount you lend. This will contribute to the development of the contractual conditions. Start the letter by indicating the amount borrowed. As you borrow money from your own personal account, you must use “me” and the name of the borrower. Avoid using a nickname from your friend.
Check their Social Security number or driver`s license to get their correct and full name. You should also add your name in the letters at the beginning after “me”. If you need to borrow money from a friend, it is best to set aside your friendship and simply consider it a business with friends and create an official money loan agreement with all the details surrounding the transaction. It`s not a better idea to lend money to a friend. Especially if you are sure that it will not reimburse you. If you still want him to be your friend forever, give him the money instead of borrowing it, as long as your financial situation allows it. If a disagreement subsequently arises, a simple agreement serves as evidence for a neutral third party such as a judge who can assist in the application of the treaty. Credit agreements usually contain information about: the beneficiary and the promisor agree with the payment agreement defined above. Has a friend, relative or colleague borrowed money from you? Read our article in which you outline smart strategies that will help you get your money back. This degree of detail is necessary for the protection of both friends, since it is much less likely that quarrels will occur. Family Credit Agreement – To borrow money from one family member from another.. .