When a friend or family member is in need of financial assistance, it is only proper to lend them money. In times of financial hardship, the only ones you can count on are your friends and family. They are there to give support. However, when you need to collect debt from friends and family, it can be a little awkward. Although you do not want to seem insincere in lending them money, a debt is a debt and it needs to be paid. Also, sometimes the money just needs to go somewhere else. There are a few ways to collect debt from friends and family without problems. With a few simple tips, you won’t have any problems in getting your money back.
Here are a few simple tips on how to collect debt from family and friends:
Try to understand the other person’s situation. If your friend has just lost his job and has not paid the rent in a few months, then it would be quite insensitive to nag him for the payment. Also, death of a family member could be a trying time for friends and family. In such cases, there is a need to reevaluate who needs the money more. If you feel that you really need the money as well, then a gentle reminder will do. However, you should always be considerate for special circumstances.
Learn to tell the difference between a friend who forgot and a friend who forgets. There are some cases when you lend a friend some money and over time, it slipped his mind. This is where reminders are very useful. Try to remind him politely that he borrowed some money from you, and you need it back. If your friend just forgot, then you’re sure to get your money back right away. However, some friends simply forget because they do not want to pay you yet. You will be able to tell this easily if you have been reminding your friend about the debt, and you get no response. In this case, you should simply talk to your friend face to face. Confrontation is the only way to get your money back.
Strike a balance between assertive and polite. While you are mindful that they are your friends and family members, you should still always remember that it is your money. It is something that is lent. This means that it should be returned. Because they are in debt to you, you have a right to get your due payment. Talk to the indebted friend or family member and set a due date for the money. This will let him know that he needs to repay you immediately, but you are still considerate, as you know he is also short on money.
The last and most important thing to remember is to be reasonable. They are your family and friends. They need your help. But in times of need, these tips will help you successfully collect debt from your family and friends.