Have you given out a loan to your friends? If yes, then it's high time to get back your money from them. Under the normal circumstances, friends pay you back as soon as possible. However, such things hardly happen nowadays. Your friends just forget the fact that they owe you money. Well, your friends can easily forget about paying you back but this doesn't mean that you should overlook the matter. Rather, you should stop being shy and ask your friends to repay you, albeit in a smart way.
Read along to know about how you can make your friends remember the loan and pay it off.
4 Ways to get back your money from your friends
If you love your friend too much, then you can just overlook the fact that the loan has not been repaid. However, if you love your financial health more than friends, then it’s time to give up all your inhibitions right now. Check out the 4 smart ways to collect money from your friend.
1. Go out for lunch with your friend but make him pay the bill
Have you paid the bills whenever you went to restaurant with your friend? If yes, then make special plans for lunch or dinner with your friend. Just casually pop in the question –“So, who will pay the bill this time?” If your friend gives a shrug or a non-committal answer, then be bold and ask him to pay this time. Make sure you’ve this discussion before going to the restaurant. Both of you can avoid embarrassing each other.
2. Ask your friend to give you a free ride
Carpooling is a fantastic way to save dollars. If your friend also happens to be your neighbor, then just ask him to give you a free ride on his car. Don’t wait till your friend gives you the offer. Just hop in your friend’s car and tell him that the cost of fuel has increased a lot. So, you’ve decided to keep your car in the garage for the next 1-2 weeks and commute by his car. Give this piece of information to your friend with a bright smile. Your friend won't be happy with you, but will get your message.
3. Have a frank discussion about the loanSometimes polite talks are not enough. You've to be bit tough. Remind your friend about the loan at least once a week. If your friend doesn’t bother to pay you back, then tell him that you need money desperately. You've offered financial help when he needed money. Now, it is the payback time.
4. Take legal steps against your friend
This is perhaps the worst way to get back money from your friend. However, if the loan amount is too big and your friend doesn’t show any interest to repay it, then you may go to the court. Think about the pros and cons of taking legal steps against your friend before going to the court. Your friend can turn your foe after the court case. There is yet another point that you need to consider. If you haven’t drawn up a contract, then it may be difficult to win the case. Verbal agreements are not always legally binding.
Money matters complicate relationships. So, if you want to have a beautiful relationship with your friend, then avoid giving out a loan unless there is no other way out. If you do agree to lend money, then draw up a written agreement where the repayment terms and conditions will be specified.