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Beware Borrowing Money from Friends (and Strangers)
Posted By Jim On 10/28/2005 @ 4:14 pm In Debt | No Comments
Would you agree to pay 90% interest on a loan? Poor Toni  apparently did, posing a scary question to Bankrate.com’s Steve Bucci. Apparently, Miss Tony borrowed $1200 and the lender is demanding $90/mo. in interest – or 90% annual simple interest (i.e. not compounding). The answer that Bucci gives is funny because he gives two of them after a few words of advice about borrowing money in general.
To Toni, he suggested that, if this was a friend or someone reasonable, she write a letter offering a reasonable interest rate (15%) via U.S. mail, certified, return receipt requested (paper trail) and see if the lender accepts it. If it was an unsavory lender, pay it off and be done with the headache.
As a side note, Bucci did suggest a great website to read up on lawyerly stuff . And yes, I made up “lawyerly” too.
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 Poor Toni: http://www.bankrate.com/brm/news/debt/20051021a1.asp
 great website to read up on lawyerly stuff: http://www.lectlaw.com/
Thank you for reading!