Hello. I originally posted asking for advice with regards to loaning money to a friend. In general the advice was to not do it, but a reasonable number of people suggesting to do it after signing a contact. Given the wide distribution in opinions and the relative frequency this must come up for other people I thought I would provide a quick update. View original post here: https://www.reddit.com/r/personalfinance/comments/6ofrug/loaning_money_to_a_friend/
Anyway, we went ahead and loaned the money at 0% interest and told the friend if they repaid the money early we would remove $200 from the repayment. We wanted to incentivize her to repay the money as quickly as possible without resulting to interest. We obtained a contract from Rocket lawyer which we both agreed upon and had it notarized. To this point all payments have been made and we are a single payment away to being fully repaid.
I would suggest that if you have a friend in need consider following these steps. Of course everyone's situation is different and the major reason this worked out for us is that we loaned it to a responsible person. That being said I wanted to share the success story to perhaps inspire others to help friends in need.
Submitted February 06, 2018 at 07:24PM by berkeleycoffee http://ift.tt/2FU4b9M
