Forming loan agreements with family members and friends

loan agreements

Loan agreements become tricky when it involves lending or borrowing from family or friends. We would all like to help out the people we love in their times of need but sometimes the risk of losing the money AND the relationship stand in our way.

Debt.org outlines important factors to consider when lending borrowing from family or friends. Statistics from the Federal Reserve Board Survey of Consumer Finances highlighted that overall $89 billion is loaned between family and friends each year in the United States.

Loans between family and friends is a popular way of receiving financial support. This form of lender also offers lower interest rates and usually the exact amount that is needed. However, one unfortunate aspect when borrowing from loved ones is that your relationship is on the line and can potentially be damaged.

That is why Debt.org suggests you protect those relationships and build on that trust by forming a long contract. Regardless of your relationship with the other party, this contract will help protect both parties in the case of a disagreement.

Debt.org also believes that that fact of whether you know the other party or not doesn’t matter. Lending or borrowing money entails obligations and responsibilities and both parties should be accountable.

That’s where Credi.com can help these two friends of family members. Our platform helps form an agreement for people by people, not by institutions for people. Credi helps safeguard trust that you share with your friend or family member. Our platform helps protect your relationship and helps you get on with life.

Read the article in full by clicking below!

Credit: Bill Fay

Source: www.debt.org/

 

 

NOTE: The views and opinions expressed here are mine and do not necessarily represent or reflect the views of Credi Pty Ltd.
Credi Pty Ltd (Credi) is not a bank, provider of legal advice or a financial lender. Credi only provides a platform that allows friends, family and third parties to originate, negotiate and conclude loan agreements amongst themselves. Credi does not provide legal advice, monitor or assess, agree, approve or decline any loan requests nor does the platform perform any funds transfer services.
Credi is not a law firm or legal practise, is not engaged in a legal practise and Credi does not act as lawyers. Nothing on this site is legal advice and you should consult a lawyer to get certainty of your legal rights and obligations.
The use of the Credi platform is governed by Credi’s Terms of Use.

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