What to do if people owe you money

Getting a friend or colleague to pay back funds owed to you can be challenging, emotionally exhausting and tricky. Nonetheless, if you follow the right advice, it is not that difficult to collect these funds which have been owed to you. In fact, there are plenty of ways to collect money owed to you, which can help you if you are faced with the situation of needing to collect on an unpaid debt. Below, several different ways to collect money owed to you are discussed so you can collect your debts and ensure freeloaders are not taking your cash.

Keep an accurate list

If you want to collect money owed to you, you need to be sure that the exact amount of the debt can be ascertained. If the person who owes you is not satisfied that he owes you that specific amount, it will present a barrier to you in collecting the money from him or her. As such, keep a list or record in your phone or notebook and record all of the debts owed to you so you can be certain you will collect from them.

Ask politely first

Mention to the person that you really need the money for a particular purpose and politely ask them when they will pay you back. If the person evades your question, try and have a deep discussion with them and try and understand why they are trying to avoid you like that. However, if this does not work, you should try some more aggressive alternatives.

Embarrass the other person

Next time you are out with mutual friends, tell them about how this particular person owes you money and how they will not pay you back. Or, mention it on the loudspeaker at a local supermarket or department store. No one likes a thief or a cheapskate and this will surely embarrass the person who has not returned the money and will coax them into doing so. Considering how extreme this tactic is, you should be sure to use it sparingly and only as a last resort.

Charge interest if you have to

Consider the fact that while your money was borrowed to your friend, you did not have use of it. You could have been earning interest or using it on recreational or personal needs of your own. After a certain amount of time, start charging interest on the money owed to you to ensure you can collect it.

As you can see, there are multiple ways to collect money owed to you. By having a strategy and learning how to ask for the money in a proper fashion, you will increase your chances of having the debt paid back as you wanted. If you follow the suggestions provided, there is no doubt that you will have your money returned to you in no time.