Loaning Money To Friends

[huskylawyer]

This has probably been stated in an earlier post, but if you decide to loan money, always put it in writing.  In some jurisdictions, a verbal loan is generally unenforceable.  More importantly, if there is ever a dispute, you want some documentation.   If it is a large loan, request that the loan is secured with some of his assets.  This way, if he/she defaults, you can try to seize the assets.

I'd loan money to friends (never been asked) or family (has been requested-and granted) if I have it (never put yourself in financial distress).   I was super poor when I was young, and people helped me out (not with cash, but letting me stay with them and stuff like that).   With that said, if the potential borrower has a drug, gambling or credit card problem, don't do it, even if they say it isn't for that.   I loaned a family member some money who liked to gamble and gets in credit card trouble, and I'm absolutely certain I'll never get it back.