The amount of the repayment plus the amount of the initial rent must not exceed 40% of the adjusted monthly income for the family. Lending money to family and friends – when it comes to loans, most refer to loans to banks, credit unions, mortgages and financial aid, but hardly do people consider getting a credit agreement for their friends and family, because that`s exactly what they are – friends and family. Why do I need a credit agreement for the people I trust the most? A credit agreement isn`t a sign that you`re not trusting someone, it`s just a document you should always have in writing when lending money, just like having your driver`s license with you when you`re driving a car. Not only does it clarify the terms of the agreement, but it also makes the agreement official. The document can be used for different purposes and if you have one on hand, both parties certainly feel safer. Now let`s move on to the last section that will accompany you in the creation of this document. This statement contains the borrower`s confirmation that he owes the lender a certain amount, called default. For the borrower, it is important to recognize that the lack does exist. Therefore, even if the payment contract is executed, there will be nothing to remove the borrower from the trap. This means that the borrower is required to make payments to the lender in accordance with the initial plan drawn up by both parties. When it comes to money, it`s always wise to be especially careful. .