woman giving money to a man

September 27, 2020 3 min to read

How to retrieve your money from the friends you lent

Category : Finance

Financial emergency could occur to anyone at any time in their life. Sometimes it also naturally happens that it becomes difficult to even meet our day to day expenses.

In such situations, it is always good to take a loan from some near relative or a friend, someone we can dearly trust in the time of need.

Similarly, if you are on an upper hand and have a better earning than your friend who is in need, then you must become generous enough to lend money to him or her, as they might do the same, if you ever need them. However, before lending money to someone you should know about two things:

1. Trustworthiness

It is better to give a loan to the person or a friend who you know very well. If he is a new friend or just an acquaintance and you don’t know much about his background and financial situation then it is better to avoid giving him any loan to him.

It is also important to know if the person, to whom you are lending your money, is good in returning the loan in time or has a dodgy history.

2. Investigation of the Problem

Secondly, you should investigate about the problem or purpose of the loan. What indulged the person into burrowing money? This will help in setting the timeline and schedule of repayment.

How To Get Back The Loan?

Usually, when we give loan to a friend it becomes awkward to talk about a repayment and in the fear that we might embarrass him or we may lose friendship, we keep extending the deadline, silently.

However, if you know how to handle the situation wisely and properly, you may end up resolving the issue without a hitch. Following are few of the tips that will help the process:

Before Paying Be Sure Your Friend Know It Is A Loan: It is necessary to tell the friend clearly that it is not a gift but a loan which he has to return.

It is better to write the things on the paper and talk to the friend without any ambiguity. If one could also inform about the loan to the family members of the friend, it would be helpful in the longer terms.

Remind The Friend Politely: It is better to remind the friend about the repayment of your money by a text or a phone call.

Sometimes, it does happen that we get lost in our daily routine work and forget to prioritize our necessary things which make us forget things like loans or their deadlines.

Therefore, it is better to remind them about the deadline by softly explaining the timeline schedule which was decided between the both of you.

Be Direct: It is better to be direct with the friend while asking for the money instead of rephrasing or being apologetic or embarrassed. Sometimes such behavior could soften the blow. So, it is best to ask for the loaned amount directly and get a positive answer.

If The Friend Is Unable To Pay Back Then Call For A Meeting: Communication can solve any issue. It is better to call a friend and casually talk over the situation in order to understand each other calmly.

It would be best if he could talk about his problem first, then the lender would be in a better position to decide about the future course of action.

By face to face meeting, the problem can be understood in a better way than over the phone. As our body language and facial expressions help a lot in communicating our emotions, problems and dilemmas…
 
Continue reading the article and learn more about money and friends on Daisy Linden’s blog.
 
 

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