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Personal Finances / Living Below Your Means


Subject:  Re: Everyone has money - until someone needs it. Date:  6/3/2001  1:32 PM
Author:  niteguy Number:  150482 of 908831

From reading your post, I'm a little unclear as to whether this is a "gift" or a "loan." I'm also a little unclear as to your current financial situation.

If you and your DH are financially secure and this $1500 was a gift, then everything is fine - at least until the next time your brother-in-law calls to "borrow" some more to get through a difficult time.

If you and your DH are still working your butts off to secure your financial well-being and this $1500 was a loan, then you need to get a written IOU. At the very least, the written IOU should contain:

1) who borrowed what from whom
2) when you expect to be repaid
3) signature of the lender
4) signature of the lendee

You can be as generous as you like with the terms. Give them six months to pay you back. Give them a year to pay you back. But if this is a "loan" and not a "gift", then you should get it in writing. Even for family.

I hope that you and your DH have made a conscious decision as to whether this is a gift or a loan. Loaning money to friend or family can be extremely unpleasant business.

Shakespeare wrote in Hamlet, "Never a borrower nor a lender be."

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