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Original poster

Loaning money

28 replies

Mamma283838 · 16/10/2026 14:27

I know the advice is not to mix money and friendship. But if I were to lend a few grand to a friend then what’s the best way to go about it? Put the amount and agreed repayments in writing of course - with another party to witness? Interest included and at what rate? Anything else?

For context we do have it to spare and if it wasn’t paid back it would be upsetting but not catastrophic. We currently have about ten times the money requested sat in a savings account that we are thinking about putting in an investment fund so we won’t get that for the period of the loan.

OP posts:

Original poster

Mamma283838 · 17/10/2026 15:03

unsync · 17/10/2026 07:05

I have loaned money to my friend. We have an informal, verbal arrangement and they pay back a fixed sum each month. The repayment is set at a low figure to ensure they can afford to make it each month. The loan is connected to their children, so there is no direct benefit to them.

I also know they are not the type to default. There are aspects that make me uncomfortable, but that's because of the way I was brought up with regards to money, savings and debt.

Having said that, they are my friend, they needed help, I was in a position to help, so I did.

This post resonates with me most. They aren’t the type to default - I think if there were difficulties we would agree it would take longer to pay it back, but I trust they would do everything they could.

I don’t really expect a contract to be enforceable, but I think it’s important to have the terms clearly laid out.

I don’t think they are extravagant either, but they’ve had high unexpected costs this year and it’s meant they can’t get something they were saving for.

OP posts:

disgracefullyyours · 17/10/2026 15:21

“They aren’t the type to default” - you can’t know this.

As you highly value the friendship I think it would be unwise to lend the money. Why take the risk on the friendship breaking down?

MrsMoastyToasty · 17/10/2026 15:44

I have worked in a CAB type of place with people in debt. The least enforceable type of debt is that owed to family and friends.

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