How to Keep a Clear Record of Money You Lend and Borrow

A verbal promise can be remembered differently later, especially when small repayments happen over several months.

Write down the original amount, date, people involved and repayment dates you both agreed. Record each payment separately, then update the balance. Confirm the record together and keep it private.

A fictional record shows PKR 12,000 lent on 1 September. The parties agreed to review payments monthly. The borrower later pays PKR 3,000, which both confirm.

1. Ask whether the other person is comfortable discussing and recording the arrangement.
2. Write down the original amount, date, payer, recipient and agreed review or payment dates.
3. Share a copy and ask the other person to confirm it is accurate.
4. Record each payment once, with its date and amount.
5. Check the updated balance together if either person has a question.

• Counting a promised payment as received before it arrives.
• Changing the balance without showing which payment changed it.
• Assuming people remember informal changes to the original agreement.

A shared, up-to-date record can reduce confusion. Keep expectations respectful and seek qualified legal help if a dispute or formal agreement requires it.