A Loan By Any Other Name

Hey,

A Wall St. buddy in his 40's has been dating a cool Fashion buyer in her late 20's. She's a trophy girlfriend. When they go out to clubs they always get in because she's very attractive. They always get invited to great media and fashion events because of her connections. She's been his gateway for getting into the Beautiful People Scene in NYC. His selling point is that he's a solid guy with a good finance job and a few of million saved up from a few good bonus years.

One day at a cash machine he holds up his receipt showing that he’s got $95,000 in his checking account. She then suggests he help her pay off her high interest credit card loan of $8,000. Since he's totally into her he pays off her $8k loan and says she can pay him $500/month for the next 16 months, therefore creating an interest free loan. So far 3 months have past and she has not paid back a dime. He’s annoyed but has not said anything to her.

So let me ask you this. Should he simply turn this loan into a gift and count his blessings or should he establish some kind of financial boundary?