When you find yourself waiting for money that your friends or your family members owe you, it can be more than a bit awkward. People in need often turn to their closest friends or relatives to lend them money. It is entirely reasonable, and it is a common practice all over the world. Yes, it does take a person much courage to approach a person for a loan, but that does not mean you have to agree to the proposal. Take time to think about the possible repercussions before you give them the money. Most importantly, think about the ways it can impact your relationship in the long run.
However, in most cases, there is a lack of written record or a proper repayment structure, which gets many lenders in trouble later on. You can find yourself in dire need of cash after a couple of months with no other option but to ask that friend or family member for your money back. That is where the real trip begins. According to the Federal Reserve Board Survey of Consumer Finances, people lend about $89 billion to close friends and family. It opens the possibility of ruining relationships in the long run. Especially if there is a lack of proper documentation and payment term, the situation can become a lot worse.
What is the real reason the person is not paying?
First, you need to think about your relationship dynamics with that person. If that person has broken their repayment promise, you need to start thinking like a lender and not as a dear friend. Find out why the person has failed to make the payment. If he is not in an unfortunate financial situation, you need to explore the possibility that he might be taking you for a ride.
Anger and aggression is not the way. You need to stay calm and be persistent. If necessary, make one phone call per day and remind him of the money he owes you. Drop by his workplace or his home, but do not be threatening. It is okay to feel angry, but you should not let that drive your actions.