Prompt

Reflect on a time where you borrowed from or lent money to someone. a. Who did the loan involve? b. What was the agreement for repayment? c. Did the agreement work out the way you anticipated? d. Were both people happy at the end?

1 answer

One time I borrowed money from a close friend, Sarah, to cover some unexpected car repairs. My car broke down suddenly, and the cost to fix it was more than I had in my savings at that moment. Sarah had recently come into a bit of extra money, and when I explained my situation, she offered to lend me the funds.

a. The loan involved my friend Sarah and me. We had been friends for several years, so I felt comfortable discussing my financial situation with her.

b. We agreed that I would repay her the full amount within two months. I promised to pay her $500, and we agreed that I would give her $250 each month until the debt was settled. To keep things straightforward, we decided to document the agreement via a simple text message detailing the terms, which also included the date of the first repayment.

c. The agreement worked out well for both of us, but not exactly how I anticipated. I was able to make the first payment on time, but a few weeks later, I faced another unforeseen expense related to my job. This made it challenging for me to stick to the original repayment plan. When I discussed the situation with Sarah, she was understanding and agreed to extend the repayment timeline by an additional month.

d. By the end of our agreement, I was able to pay back Sarah in full, albeit a bit later than planned. We both felt relieved and happy—she appreciated the communication and honesty on my part, and I was grateful for her support during a tough time. The experience ultimately strengthened our friendship, as we both learned a lot about trust and understanding in financial matters.