Times are hard making money is harder and asking for your money back from a debtor is probably one of the hardest things to do- but it doesn’t have to be. These days every naira counts. Between the rising cost of living and the unpredictable dollar rate, who wouldn’t want that “small loan” you gave a friend or family member back? But the thought of asking for it back? Now that can be a real struggle.

The good news is that there are ways to navigate this situation and (hopefully) get your hard-earned money back, with minimal drama and maximum success.

Here are some common mistakes people make when lending money to friends:

• No Written Agreement: writing things down might seem a bit formal between friends or even acquaintances, but it’s actually a big help. It’s like a clear roadmap for the loan – how much you’re lending, how it’ll be paid back, and what happens if things start to go south. This way, there are no misunderstandings later, and everyone’s on the same page. It protects both you (getting your money back) and your friend (knowing exactly what they owe), which is important for keeping the relationship smooth sailing, even if things get tight financially.
• Lending More Than You Can Afford: Lending money you can’t easily give out puts you in a risky spot. Life happens, and you might suddenly need that money for bills or unexpected things. Plus, there’s always the chance you might not get it back. It could interfere with your savings, and future plans, or even handling emergencies. It’s like putting your own financial well-being on hold, hoping someone else will come through.
• Ignoring Red Flags: Past behavior is often the best predictor of future actions. If someone you know consistently struggles with managing their finances or demonstrates impulsive spending habits, then the chances of them prioritizing repayment become slim. Lending under such circumstances essentially sets you up for disappointment.
• Avoiding Difficult Conversations: Hesitating to discuss the loan repayment or address missed payments can create tension and complicate the situation. This is where we come in.

Also Read: Lawful procedures to getting your money back

Steps To Getting Your Money Back

Here’s what to do when it’s time to get your money back, now that you know what to do before giving it out:

Direct Communication: Start by casually mentioning the loan in a conversation, reminding them of the agreement and asking about their repayment plan. This gentle approach opens the door for discussion. However, if the initial conversation doesn’t yield a clear plan, be more direct. Explain your need for the money and express your willingness to work together on a realistic repayment schedule. Remember, clear and firm communication is key to getting your money back while preserving the friendship.

Consider Legal Action (Last Resort): If significant sums of money are involved and the debtor remains unresponsive, consult with a lawyer to understand your options. Legal action should be a last resort, after attempts at communication have been exhausted.

Remember, the key is to be proactive, clear, and persistent in your communication while remaining understanding and respectful. The sooner you address the issue and establish a concrete repayment plan, the higher the chances of getting your money back.