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Ideal Ways To Collect Money From People Who Owe You

It is absolutely normal for a person to lend money to a family member of a friend, it shows a bit of kindness and compassion towards people who is in need of financial help. However, you are of course just letting them borrow money from you and they should know that they have to give it back. It is actually ideal to have an agreement between two parties.

For instance, it is best to make a written agreement where it says that they indeed borrowed money from you and that they should pay you on the agreed date. This is just in case they act like nothing happened and would just disappear into thin air. These people are just this kind of people who would literally escape their responsibility to pay even if you lived up to your side of the bargain and they didn’t. Debt collectors always seem like they’re One of the “bad guys” but the truth is, the ones who owe people money are making it extremely difficult for them to stay civil. Money could definitely ruin families, friendships, and other relationships. So here are a couple of ways to collect money from the people who owe you.

Debt collectors always seem like they’re the “bad guys” but the truth is, the ones who owe people money are making it extremely difficult for them to stay civil. Money could definitely ruin families, friendships, and other relationships. So here are a couple of ways to collect money from the people who owe you.

“The problem is indeed that one party’s debt finds its counterpart in some other party’s savings. Not paying debts, therefore, involves annulling some other party’s financial claims on the debtor.”  Michael Hudson

KEEP IN TOUCH

The very first thing you must do when lending money is to make sure that you will stay connected to the person. If it is a relative, make sure you have their contact details, even their home address, it is your right, after all, you are their relative.

Same with lending money to a friend, make sure you have contact details and mutual friends so that you two will stay connected. Collecting your money would, of course, depend on how much was it. If it is just a small amount then you could probably go easy on them, but if it is big, try to make an agreement where they could pay it off slowly.

ALTERNATE FORMS OF PAYMENT

It is also ideal for you to consider other forms of payment. If you know that the person literally doesn’t have any money to pay for her debt, you could then ask for their services or other favors, or it could also be a form of material things like giving you an item that has the same cost. For instance, they owe you around a thousand, they could give you their new smartphone that cost almost the same price, or if it is around millions, they could give you their house or their car. Just make sure that it is always to your advantage.

BE DIRECT

Now, this is possible if the debtor does not reply to your calls, texts, e-mails, letters, in any type of way, if they are intendedly ignoring everything. Consider contacting people who are in a close relationship with the debtor, like their family and friend, and even their employer. That would totally prove that you are serious about letting them pay.

 

IF THEY STILL DON’T PAY, HIRE A COLLECTION AGENCY

If that didn’t work, consider hiring a third-party collection agency to conduct your claim. It would be hassle-free for you since you don’t need to do so much effort when it comes to making them pay. However, the only downside of this is that you would have to pay them for their services, so it’s just like wasting money as well since you are trying to get your money, but at the same time spending it as well.

FILE A LAWSUIT

Lastly, if everything else fails, this can be your last resort. Check your state court website or go there to inquire regarding this matter. If you find out that you could go to court, then prepare for your hearing.

This would be in your favor if you have a signed contract with your debtor, make enough copies for proof. However, before you do this, you must make sure that this is actually worth every hassle like the person owes you so much money, then it will indeed be worth it, but if it is just like a few hundred, then just try the other ways above.

“You can’t get out of debt while keeping the same lifestyle that got you there. Cut out everything except the basics.” Dave Ramsey

Keep in mind that you are just doing what you have to do, there is no reason for you to feel bad or guilty, it is your right to get what is rightfully yours, things don’t have to be complicated.

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