Shakespeare said that lending money to a friend is the easiest way to lose money and the friend. Things have not changed much since that time. A survey revealed that 43% of the respondents who had lent to friends or family members had not recovered its money in full and 27% had not received a penny.

If you’re going to pay, minimizes the risk of losing money or generate conflicts with the following considerations and suggestions:

*-Donation: Consider instead make a monetary gift less than the amount requested or offer a way to make money.

* Ability to pay: How will you pay? If the option is not practical before, ask the person how you will get the money to pay. There are people begging for money and have no plan for repayment. Do not feel obligated if the method makes sense.
*-Documentary: Remember that words are not binding. If the amount is considerable, edit a document clearly details the agreement. It is not about creating a complex document. It is what is commonly known as a promissory note that is not nothing but an unconditional promise to pay a sum of money. If the budget allows use an attorney and compare prices. Take advantage and knows the legal and tax consequences involved. Benefits of writing a document:
or “I give formality and seriousness to the matter;
or described in detail and clearly the agreement and expectations of each party.
o-Parts of the document:
+ Names of the parties;
+ Date of the loan;
+ Quantity;
+ The date to be paid;
+ Interest, if any;
+ Number of payments and frequency;
+ The date on which each payment is made;
+ What happens if you pay late or misses a payment.
*
* Unless necessary, it prevents the repayment of the full amount. Best looking periodic payments. The odds improve when people have the option to pay little by little. Less amount has to pay and believe in the practice of paying debtor. Sometimes the person does not have the discipline to save that money until you have completely. At the end never manages to collect the tax.
*
* Looking for that periodic payment is automatically deducted from the account of the person. You from having to be asking or reminding, or hear excuses. If you know there are no funds quickly.

If you’re going to borrow, increase the likelihood of obtaining the loan if:

* “You’re writing the terms. So prove you’re serious about the loan and give you more secure is paying;
* Provide any collateral or offer attractive interest or additional conditions such as you can give the money upon request (if circumstances will allow);
* “Prepare a plan which details how you will make the repayment.

“When you ask for a loan, avoid problems realistically. For that follow the golden rule, promises little and delivers much. Do not secure to be paid back in a month if you know you will take at least six. Be ultra conservative in your projections and seeks to fulfill on time or earlier.