An IOU template, also called an “I Owe You” template, is a great way to keep track of any outstanding debts that are owed to you (or that you owe). In the mix of work, family, and friends, you can easily forget about debts. These templates help keep those debts at the forefront of your mind, and ensure that you receive any money that is owed, or that you don’t forget to pay a debt. Yet, where can you find some IOU templates?
When Should I Use an IOU Note?
You should use an IOU note anytime that you are lending a significant sum of money. You shouldn’t use an IOU note for a sum of money such as five dollars, but for a sum of money such as 100 dollars, an IOU note is inappropriate. If you are lending thousands of dollars, the note will become vital in case you need to go to court.
Even if you are borrowing money, you should use an IOU note. This reminds you that you owe the money, and reminds you that you have to pay it back. You won’t forget that you have an outstanding loan due to a friend (or family member), and forget to put aside money to pay back the loan.
Overall, an IOU note simply makes the process of lending (or borrowing) money more official. Especially when friends are borrowing money from each other, an IOU note can clear up any misunderstandings or disputes down the road. For example, sometimes friends forget how much money was even lent, and this can lead to significant problems. The IOU note will prevent this.
Find an IOU Template
The Microsoft Office website offers a free and downloadable IOU template. The office template is nice it is a straightforward and simple IOU note. It has space to write the amount that is owed, the lender, the borrower, and the date that the money was borrowed.
Furthermore, the template has a place for a witness to sign verifying that the reported information is true, and that he or she witnessed it. This can be extremely useful if you have to take the individual that you lent money to into court. The witness, and the signature of the witness, provides another verification of the loan.
Additionally, the Microsoft Office template also has a note that you fill out once the money is paid back. The template acknowledges that the loan was paid back in full, and again allows space for a witness to sign the note. If you are the one who is borrowing money, this template can be vital for court. It verifies that you paid back the loan.
IOU Templates Verses Promissory Note Templates
You may wonder what the difference between these two documents is. Specifically, a promissory note is a lot more detailed than an IOU note.
For example, if you do not like the Microsoft Office template, than you might want to consider the promissory note template from the website the Law Depot. This template is nice because it’s saved to the website. This way, in case you lose the paper copy, you have a digital copy as well.
Additionally, this format is much more official than the Microsoft Office format. You should use this format especially if you are lending (or borrowing) a large amount of money. This format has a space to designate what state the money is being lent within which can become important in court.
It also has a space for charging interest, as well as a space that specifies how the money should be paid back. For example, you can choose to have the borrower pay the money back in a lump sum.
Thus, whether you choose to use an IOU template or a promissory note, remember that you should use one of them when lending money!