Recourse for recovery if lending is done to a relative or friend

 

I am pretty sure that most of you have faced a problem or are going to face it, and the problem is how to recover the money that you gave to a relative or a friend.

 Sometimes you feel the need to provide monetary help to your friend or family members because either they are in danger or they are having financial problems. But now, when you want to get the money back, then they're not giving it back. So what to do? 

Let's discuss this, 

1. Have an honest conversation - 

Start with a soft note and try to find out why your friend or relative hasn't reimbursed you yet by speaking with them first because maybe they are going through some financial problems or they just need some time to pay back. It can also happen that they might have forgotten. Try to come up with a solution after having a comfortable conversation that benefits both of you. 

2. Set a new time - 

So now, if you get a chance to have a conversation with your friend or family member, frame it in a way so that you can come up with a necessary solution without hampering the relationship. So if they're having any financial problems or if they have forgotten, then ask them when they will be comfortable paying back. Then set a revised time for the payment they are comfortable with, and you can also wait till. 

3. Forgive the debt - 

Sometimes the problem arises that even after changing the time and having a discussion, the solution is not derived. So then you need to ask yourself, What is more, important to you, the money or the relationship? If the answer is the relationship, then forgive the debt. In that case, the monetary amount also needs to be minimal, that you can afford to lose. Then you need to learn from this mistake and take care next time while giving money to someone. 

4. Take legal help - 

But what to do if the amount of the money is enormous and you can't afford to lose that much money? Then you will have to lose the relationship because the only solution that's left is seeking legal help. You can consult your lawyer, and they may help you. You may have to file a legal suit against them, and that will surely cost you your friendship or family relationship. But that can be the only solution if the amount is big. 

5. Bring a mediator - 

Ok, there can be a solution that is not as tough as a legal suit but kind of the same. You can take a mediator with you and meet the person you gave the money to. You arrange a discussion again, and this time there will be a mediator who can be a common friend or a lawyer too, and then you can sign on an agreement about the return of money. If that doesn't work, then you can take legal steps on the basis of the agreement. 

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