Posted on Aug 23 by Lenddo Philippines
Filipinos, by culture and by nature, are really helpful. That’s why when a friend needs help, you try your best to lend a hand. So if he/she asks if he/she could borrow money from you, without having a second thought, you would immediately lend him/her. Most often than not, the money you lend to your friend came from your savings. So what happens if he/she doesn’t pay you on time?
In most cases, whenever your friend fails to meet the deadline you gave him/her, the friendship slowly fades; feelings get hurt. You, of course, don’t want to risk losing the relationship you have with your friend over his/her unpaid debt. And you certainly don’t want your hard earned money to just slip through your fingers. So how will you ask a friend to pay the money he/she owes you?
Once you lend a friend an amount of money you worked hard for, you should keep the following tips in mind:
- Before lending money, assess your financial situation first and determine if you can afford to lose such an amount if ever your friend fails to pay you.
- Set a specific date for the payment- a date that will be convenient for both of you. Be considerate; keep in mind the reason why you let him/her borrow money from you.
- Remind your friend about the loan a few days before his/her promised date of payment. Text, call or email him/her.
- If your friend doesn’t respond to texts, calls and emails, perhaps the best way is to pay him/her a visit.
- If he/she fails to pay on the agreed date, set a serious and honest talk. It is important that you keep calm. Ask him/her to explain his/her current situation. You can also help figure out his/her finances (without lending him/her more money). Help him review his finances and give out money management tips.
- It is important that you compromise. Suggest other ways how he/she can repay you. Ask if it’ll be easier for him/her to give partial payments (e.g. 1,000Php/week) or give you something he owns which can compensate the loaned amount.
- Sometimes, you need to ask for collateral. Make him/her understand that he/she can only get the item once the repayment is done.
- When all else fails, and you’re too tired to keep on reminding him/her, consider giving the amount. You’ll probably forget about it in no time. You may refer to the 1st tip to make this last note easier for you to accept.
It is often not a good idea to loan money to friends. But really, can you resist the need to help someone close to your heart? The most important thing is to keep a good relationship with your friend and never go bitter over money. Ask yourself, “Is my relationship with this person worth the money he/she borrowed from me?” Try to be as understanding as possible. In the end it will save your relationship and will keep you both from losing each other.