I don’t loan money to people anymore. I’ve had family members and friends try to burn me one too many times. It just isn't worth the drama.
I loaned a friend $1,000 about ~10 years ago. She had just gotten out of a relationship, found herself pregnant and had a miscarriage shortly after she found out, and was struggling to make rent — but had a good job. The money was intended to get her back on her feet. And while it will sound frosty, I made her sign an agreement to repay, interest-free, a more than reasonable amount each month and had another friend witness it. I explained that I didn’t want to have to hound her for it like a loan-shark, expecting her to do the right thing and write me a check each month for the amount agreed upon. Initially, she was true to her word, but over time she began to slip by a few days until finally, she stopped repaying me altogether. I started to hound her like a loan shark and it pissed me off. She still owed me about $500 at this point. During this time, she switched jobs and decided to move back home, which was out of state, and figured it didn’t matter if she repaid me or not. She blew off each attempt I made to reach out and request that she start up her monthly payments again. Oh, hell no.
I gave it another month of crickets and finally emailed her one last time with her own social security number, a copy of the contract she signed, a copy of her driver’s license, her parents address where she was living and said I would be going to small claims in my state to pursue the issue since she broke our written agreement. This meant she’d have to return to contest it and likely pay additional fees or damages. And it was pretty obvious, I was in the right.
Wouldn’t you know it — I got a money order for the remaining amount a week later with a written apology. I cashed the money order and never spoke to her again. She showed me her true colors and I don’t need friends who don’t stay true to their word and try to scam their “friends.”