Lending money to friends is a kind gesture we get from supportive friends. Long-term relationships have been destroyed because of the manner some people ask for repayments of monies they lend to their friends. Dishonest debtors often give excuses or do not talk about their debt at all, ending up not paying. This act of kindness becomes very difficult for some people, especially with the decision whether to lend money to friends again; Partly because they do not know how to ask for their monies back without ruining their relationships.
Here are 6 cool ways you can take your money back from your debtors without ruining your relationships right from the onset ( just before you give out the money).
- Never give an amount of money that you cannot afford to lose.
Always ensure you lend out monies you can afford to lose. For instance, you earn $10K a month, and let say you can spare about $200, without being scared of losing it. That means you can lend out $200 to your friends if the need arises.
- Never lend money to your friends indefinitely, agree on a deadline.
Lending monies to your friends must be an agreement between both parties. Both parties must agree on the payback time. This agreement can be done by way of an ‘I owe you’ (IOU) or a verbal agreement; however, the latter is the best.
- Occasionally remind your debtors directly but politely.
People genuinely forget they owe you money especially when the money was lent to them in a casual and random manner. Nonetheless, you must occasionally remind your debtors of your money. Also give them reasons why you need them to pay back your money in time.
- Never discuss your friends lending history to other people.
Most long-term friendship have gone bad because one decided to discuss the loan history of the other with a third party. Often with the aim of taking their money back through the third party who obviously was not in the picture at the time the money was loaned. Most people find this as an annoying approach to ask for your money back. They often ask ‘Why not be direct and confront me if you need your money back?’
- Do not apply so much interest on the monies you loan to your friends
Most friends borrow what they can afford to pay back in time. Adding a lot of interest because they are vulnerable at the time they took the loan often makes it difficult for them to pay back in time. Remember that this gesture is an act of kindness or support to relationships; hence, at best apply zero percent interest so they can payback in time.
- Help your debtors to repay you on time.
If your debtors cannot do a one-time full payment of your money, support them with a payment plan, such as paying in installments for an agreed period. This will enable them payback your money in time.
Those are some of the cool ways you can take your money back from your friends without ruining your relationship with them. Hopefully this will help you take back your monies from your friends.