Have you ever and if you did how was your outcome?
:-\....yea
Yeah and it's generally a really bad idea. It might work for some, but unfortunately for me, those who want to borrow money have absolutely no way of paying it back.
Whether friend or family, the person loaning the money needs to look at a couple of things:
1. A person's ability to repay;
2. What the circumstances are surrounding the need for a loan, and whether the borrower has done all they can to lessen the amount needed; and,
3. Whether or not the borrower is willing to sit down and write out a specific, binding promissory note, inclusive of pay schedule and terms of default.
I was approached by a friend of mine many years back about purchasing an extra vehicle I owned. I agreed, and we wrote out a contract for the purchase of the vehicle, payable at $100 a month. At about the 5th month, the engine blew because he didn't ever check the oil. He still paid the car note off, and I was later willing to help out with a supplemental loan to get him back on the road again. Yep, another contract was written. I also wrote a letter of credit for him, verifying he paid off those two loans timely and in full, and he was actually able to obtain independent/business financing to start building a credit history and score (he'd always paid cash for things and had virtually no history). If the person is responsible, it is okay, but alot of people don't consider a person's spending habits and fiscal history when making a loan. They just want the whining to stop. ::) ;D ALWAYS get it in writing; in a court of law, if it's not in writing, it doesn't exist!