How to Get Your Money Back from Friends Who Owe You
I once lent some money to a friend of mine, who never bothered to return me the cash. Both of us are good friends but at some point of time, such a behavior annoyed me very much. I hate running after people begging for something which they owe me and the most difficult part in this case is that, in the end, I had to coax and send her reminders a couple of times. Ever since then, my impressions about lending money to friends have changed.
I like helping my friends when they fall into trouble but in case of money matters, I often hesitate.
Good Friends Might Not be Good Borrowers
I can believe that a friend might have a genuine reason for not being able to return you the money that he/she owes you. However, in most cases, there are friends who can afford living an extravagant lifestyle and not yet bother to return the money they have borrowed. There are other reasons why such kind of friends won’t pay back the money that you had lent them, but in most of these cases ‘saying no’ often seems tougher than what you had thought.
Probably because he/she is your best buddy or a close relative with whom you would not want to be in bad terms. However, the thought of not being able to get your money back is also gnawing at your heart from within.
Friendship and Money don’t go Hand-in-Hand
If you have a friend who is asking for some financial help, then here are some helpful tips that you can follow to deal with such situations, while at the same time lend a hand to a friend in need.
#1- Consider the Following Factors When Lending Loan to a Friend
Whether you want to lend money to a friend depends on how good your relationship terms are with him/her. And the factors that will help you to determine this are -
Your Value System — How much important is it to help him/her? Is your financial savings sufficient enough that you can help your friend out?
The Risk of Default — How much do you trust your friend? Is it worth taking the risk and helping him/her out? What if your friend never returns you the money?
If the above criteria sounds favorable to you then go ahead and help a friend out. However, if you are troubled with doubt but feel morally obligated then don’t forget to take the following steps -
#2 — Set Up a Written Agreement
Keep a pen and paper handy when you sit down to make a financial lending. A written agreement helps you get the clarity that you want on the repayment plan. Some of the points that you must make sure to include in the pre-lending agreement plan are as follows -
- The amount that is being lent
- The repayment schedules
- The stipulations
- The mode of payment
Keep track of the repayment details so as to ensure that everything goes as according to the written agreement.
#3 — Drop by Some Friendly Reminders
This is something that no lender would like to do, least of all a friend who does a wonderful job by going ahead and helping someone out. Now its his bad luck if after having received the money, the borrower goes completely silent about it. What you can do is give some friendly reminders. If the person is your best pal, then go a little bit polite.
Explain but don’t beg: tell him/her that it is a part of your savings from where you had decided to lend him/her out of good will and would appreciate if it was returned. If that does not work, then here are three simple actions that you can take. Read the next two points below.
#4 — Make Your Friend Pay for Your Activities
It’s a manipulative step but a hell lot of fun. Make your friend pay whenever you are going out for lunch, movies or maybe for a concert together. This will get your friend make up for the money that they owe you. Sounds despicable to you? Well blame your friend for turning you into the devil.
#5 — Scream and Shout
Do go for this option only if you are bold enough (and if you don’t like the person that much). If you are the person who has got the balls to do it, then scream and shout until you get your money back. This is an approach that is so shocking that it will simply make your friend go, “here just take it! I don’t want any of your money”. Try at your own risk for an angry reaction also comes with conditions applied.
#6 — Introduce Your Friend to an ‘Alternative’ Lender
This is the best and often the safest way to go out if you really want to help your friend. You can refer your friend to a car title loan lender instead. Title loans are short term loans that your friend can apply directly online and expect to get the money within twenty four hours. This is unlike a traditional loan, because there is no requirement for credit history check and your friend can apply for a loan simply by putting his/her vehicle on lien.
The best thing about this kind of loan is that your friend can get to use the car even during the loan term. The terms and conditions are also very friendly and your pal can repay the borrowed money easily every month. Different car title loans offer different payment options and packages and you can help your buddy out by doing a little bit of research together and choosing the best and the most reliable car title loan lender.
You can also apply for a title loan if ever you feel the need of money and wondering whom to approach. The choice is clear: If you decide to lend your friend a loan, then take the above precautions or else, simply refer him or her to an alternative lender like the title loan lender.
