 TITLE: 5 Tips for Borrowing Money From Friends and Family CONTENT: 4\\. Create a Loan Contract\n--------------------------\nThis step might be easy to overlook, but a simple loan contract can provide your friend or family member with peace of mind and make them feel more comfortable providing a loan. Having things in writing can also help keep both parties honest and prevent finger-pointing down the road that could ultimately hurt the relationship.\nA loan agreement, often called a promissory note, is a legally binding document that outlines the terms and conditions of the loan. This can include:\n*   How much you're borrowing\n*   If the lender is charging interest or requiring collateral\n*   The repayment timeline\n*   How much your payments will be and when they'll be due\nBy signing it, you're acquiring the debt and giving the lender the power to take you to small claims court if you default. This may sound extreme, and it may be unlikely that things ever come to that, but it's important to understand that borrowing money from friends or family should be treated like any other loan. It's not typically necessary to get a lawyer involved, since you can create a standard promissory note using a template from an online legal services provider. END