Loan Documents: Document Your Loan With Friends and Family Part 1

You may be at a point in your life where you are learning how to manage debt in your life. You may have creditors, debtors, and friends and family who have leant you money over the past months or even years. Most of the loans with friends and family are not secured and not even documented. The Loan Document is a very important tool to helping you, almost as important as the money that was originally leant to you.

Believe it or not, but documenting your loans could save you from Bankruptcy and financial peril. Why is this? In Canada, the Bankruptcy process is initially put into a dispute process of which your creditors can vote to put you into Bankruptcy or vote on a negotiated settlement. In order to be heard in these settings, you need to have a documented loan. Thus, the loans between your friends and family if documented, can apply to the situation. The majority of your debtors decide and negotiate the settlement agreement.

By documenting loans with your friends and family, you can accrue a group of positive debtors that can vote against bankruptcy and in favour of your settlement. Sometimes this can be done for pennies on the dollar. Thus, documenting a loan could save you if you are in a personally tough spot financially and face the possible decision of bankruptcy.

If you need to document your loans with friends and family, I suggest purchasing a loan document from www.kasu.ca also known as www.documentyourloan.com. Make sure you get all of your loans with friends and family documented. You can buy a loan document for as little as $59.99, versus paying a lawyer $100 for a simple document. Get those loans in writing now!

You are trying to consolidate your debts, you have maybe hired a credit counsellor or are seeing one like www.creditcanada.com. 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 www.creditcanada.com. 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 www.documentyourloan.com 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 www.documentyourloan.com

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