3 Things You Can Do When a Friend Won’t Pay Back a Huge Loan
Are you the type of person who lends money to friends? Though it’s an unwritten rule that you should never lend money to your friends, sometimes, you feel that you need to help your friend in dire circumstances. After all, you’ve already known that friend for years and you trust they’ll pay you back soon. But, what if they don’t?
Here are a few things you can do to get your money back from a friend:
1. Suggest a Payment Plan
Maybe, the reason for them not returning your money is that they couldn’t pay the entire sum. If that’s the case, propose a payment plan. Talk to them and find out if they can pay you in instalments. Write out the terms and conditions for the payments, including the exact dates and amounts. Debt recovery attorneys from Rainey Collins Lawyers even suggest notarizing the agreement or asking the advice of a lawyer before implementing any debt payment agreement.
2. Consider Trading Items
If it seems like your friend will never have the money to pay you, even in instalments, consider trading items. Suggest that you can let them off the hook for their debts in exchange for some of their belongings. Perhaps they have a laptop or a smartphone that is equal to the value of their loan. If they’re fine with the idea, it is a great way to collect the debt without leaving a lasting resentment in your friendship.
3. Have Them Pay For You When You Go Out Together
This idea is only applicable if you and your friend are in good terms. Ask your friend to pay for you every time you two go to the movies or dine in restaurants. This way, it’ll be easier for them to pay you back and you don’t have to worry about shelling out cash whenever you go out together.
Loans can sour friendships, and you can lose your friend over this issue. So if you cherish your friendship, try your hardest to find a way to help your friend pay you back. After all, your relationship is more important than a large amount of cash, which you can still earn in the future.