Annie’s Mailbox: Loaning money? Put it in writing
Dear Annie: I’m responding to “Played for a Fool” and others who have loaned money. I’ve learned the hard way about the need to document financial transactions.
If I loan money to a friend or family member, or sell something requiring payment, I type up a simple loan agreement, date it and state the amount borrowed and the repayment terms. All parties must sign it. I keep the original and make a copy for the borrower. When a payment is made, I write a receipt for the borrower and keep the copy for my records.
If anyone refuses to sign a loan agreement, I won’t loan them money. It may seem hardhearted to family members, but people tend to “forget” a loan and regard it as a gift. One of my sons lives with me and pays rent. For every payment he makes, he gets a receipt. I do this so that his siblings cannot say he is taking advantage of me.
It is such a simple thing to do, and documentation avoids stress and hard feelings. Also, if a large amount of money is involved, and you need to go to court, you have evidence to present to the judge. – Spokane, Wash.