Document Your Loan With Friends and Family Part 3

Loan Documents: Document Your Loan With Friends and Family Part 3

You are trying to consolidate your debts, you have maybe hired a credit counsellor or are seeing one like Now you have possibly written all of your debtors in a long list, you may have even called some of them and negotiated the price down for your outstanding debt in return they will not report you to a credit bureau. Now you need to consolidate it and make payment. You can give the loan to the Bank, or you can go to a friend or family member. However, this is a sizeable amount, and you do not know how to ask for it, you know how much of a difference this will make in your life, so you need a plan. Luckily, you probably have looked at your monthly expenses, and built a budget and a plan, or at least filed in the free assessment at So you present to your friends the plan you have to get out of debt, possibly some of the creditors you have negotiated down in value, and identify the amount of money you need. He plan you have developed adds credibility to your choice to get out of debt, and to add additional credibility you present the idea of building a loan agreement with friends and family who can lend you funds, with a payment schedule and proper loan terms. Instead of paying these creditors 19% credit card rates or 29% in the event of default, you can pay them 5% or even 10% on their money over a one year period or however the timeframe fits into your budget. If the numbers look right, and the investment in you is higher than they can get from the Bank, and the plan is believable, you get the loan and document it. You go to and fill out the loan document form for $59.99 as it is cheaper than going to a lawyer for $100+ in legal fees. The frugal decision to document the loan with a provider versus a lawyer impresses the friend and family member because you are already showing your desire to save money and use innovative replacements for what is an unnecessary extra expense when you can get it cheaper at

Use your loan documents and personal financial plan as a way to achieve loans from friends and family.