Well, the fact that you have not signed anything is bad for the other guy, but you can't lie in court and if you owe this money and they take you to small claims court you'll have to tell the judge the situation and my guess is they will make you pay the agreed amount back. Plus they won't be as flexible as the other investor will be as far as payment plans and such, so it would probably be better if you work out something to pay it back before you go to small claims court.

Good advice, Jodi. There is also the moral aspect of this situation. When you borrow money, there is an implied contract - even if it is only verbal. But there is the bigger contract - the one with yourself! You made a promise to pay the money back --- your word is the only thing you own that you have complete control over. It's important to keep your word.

Try to offer a settlement that is fair to the person you borrowed from, but manageable for you SO THAT YOU CAN KEEP YOUR WORD TO THEM!

I think it does not matter whether or not there is anything written down in this case. You provided your word verbally to your unlucky friend that guaranteed a certain rate of return for their loan to you. Now you want to change the terms of your agreement to suit your needs while putting your friend at a disadvantage.

After placing their trust in you and you changing your mind after the fact, the person who lost their money has every right to be concerned and demand full payment back immediately after the 45 days have passed. You have probably lost a friend and your former friend has hopefully learned a lesson never to trust your word in regards to financial affairs.

Are you asking if you can get away with not paying him back because there is nothing in writing?

I thought you said he was a friend. You wouldn't want a friend to treat you that way.

You need to do whatever necessary, like getting 3 or 4 jobs, to pay him back. He was nice enough to loan it to you in the first place.

Sounds like you're trying to wiggle out of your responsibility to your friend.

Pay him the money!

If this deal was turned around and it was money your friend had borrowed from you, you would expect repayment. It's up to you to anything you can to make sure your friend gets his money back, interest included.

It is a very poor idea to lend money to friends and family because it often leads to situations like this where the borrower feels that the friendship can be taken advantage of without any consequences. You have to view this loan as seriously as one you would take from a bank.

It seems you are willing to throw away the friendship so you can escape repayment. That's not being a friend and it's not good business. No matter what you owe, pay it. Holding your friend hostage because you have a personal relationship doesn't cut it where money is concerned. A debt is a debt.