A promise to pay back money, for whatever reason it was borrowed, is essentially the same as a loan. If you do agree to something like this, it may be in your best interest to use a letter or form to make the transaction a bit safer for both parties involved. Here is a good sample promissory note that you may wish to follow. Feel free to alter it to suit your needs, so it will work better for you as a borrower or lender. Let's look at this example of a promise to pay back money when you borrow it.
Amount Borrowed: ___________ (in both numeric and written form)_____________________________
I, ___(Name of Borrower)___ do hereby agree to pay back the sum of ___(Amount Borrowed)____ to ___(Name of Lender)___ on ___(Date)___. Payments of ___(Amount Here)___ shall be made__(Monthly/Weekly)___ on ___(Day of Month)___.
Annual interest, in the amount of ___(Interest Rate)___ shall be calculated on the unpaid balance. A late fee of ___(Dollar Amount)___ shall be added for any payments made after the ___(Date)___ of each month.
Borrower's Name ______________________________________________________________________
If you promise to pay back money with a lender, it may be wise to add a line for witness signatures or even to have the letter notarized. It will only cost a couple of dollars and will help to make your promise to pay back money contract more authentic and likely to hold up in court, should that be needed.
Consider adding additional information to this example. In the sample promise to pay back money form, there is no mention of what the money is being used for. So, for example, if you were borrowing someone some cash for a new car, you may add a section in the contract that the lender will hold title to the vehicle until the promissory note is satisfied.
Others may want to specify exactly how and where the payments are to be made. You can easily add this to the sample promise to pay back money letter in this article. Perhaps payment is to be made by PayPal, or in person at a specific location. This is all pretty easy to alter to suit your needs.
Demand receipts when you pay, especially if you decide to pay in cash. It may be wise to state in the promise to pay back money contract that you will be given a receipt. If not possible, be sure you pay by check, money order, or some other method where you can easily verify the payment was made.
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