How to Collect Personal Debt from a Friend

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In the past, you might have lent money to to a close friend because they simply asked you for it. This might have felt good at the time because you felt as if you were helping someone who truly needed it and it allowed you to know that you were helping them financially when they happened to be in a bind.

The problem that many people often face is that a personal debt that they have with a friend goes unpaid for quite some time. 

This can put you in a predicament because you do not know how to go about asking them for the money back but you know that you need it for your own financial requirements.

Asking Them Outright

One thing you might want to know when it comes to having a personal debt with a friend or loved one is that there could be a possibility that they forgot that you lent them money in the past. 

 We are all human and we all make mistakes and forget things, so this could definitely be why they haven’t paid you back for what you have given to them.

If this happens to be the case, one of the first things you might want to consider doing instead of taking extreme measures is to ask them for the money in return.

In many cases, if the friend forgot about the money that you left to them, they will be more than happy to pay you back once you remind them.

While it might seem like a slap in the face when it comes to having to remind someone to pay you back, it is definitely worth asking because this might be an issue where the money was forgotten about and the person doesn’t even realize they have a debt with you.

Written Notice

If you have already asked them about giving you the money back and they have yet to do this despite telling you that they would, your next step would be to write something to them so that you have written proof of asking for the money in return.

You can do this by either writing a letter and sending it to their mailbox or you can send them an email or text message.

By having something like this in writing, it is going to stand up if you have to take the person to court, which is an unfortunate problem that many people are now facing because of a personal debt they had with a loved one.

One of the most important things for you to remember when writing out a letter or text message to your friend who owes you money is to always be as professional as possible.

Using harsh language or threatening them can be used against you in court if you ever decide to take them to get your money back.

This will actually work against you and may cause you to lose the money you lent them simply because you were threatening them in a written letter.

Going To Court

The last and final way for you to collect a debt from a friend is to take them to a court of law. This is obviously an extreme measure that many people do not want to take because of the fact that it can truly damage your friendship with that person. However, this is often what needs to be done if nothing else is working.

If you have tried multiple times to get in touch with the person and have talked to them multiple times about paying you back and they still have not, it is about time that you consider taking them to court for the debt that they owe you.

Represent Yourself In Court

When taking a friend to court, it is very important that you either represent yourself in court professionally or you hire a lawyer who can do this for you. In most cases, people will go to small claims court in their local town or city where a lawyer is not necessary.

This not only saves you money, but it also allows you to represent yourself in court in front of the judge. Make sure that you have any and all paperwork of what you went to that person as well as the letters that you sent to them regarding paying you back that were ignored.

While it can be difficult for you to get money back from a friend, it is essential that you try these methods in order to do this so that you are also not putting yourself in a financial bind.

Many of us have good hearts and are willing to help people around us who ask for it, but it is horrible to know that the same people could take advantage of us by not paying anything back and allowing us to get into the same financial situation that they were in.

Explore Further

  1. Writing a Demand Letter for Payment Before Small Claims Court
  2. Write a Simple Demand Letter for Unpaid Wages
  3. Writing a Simple Personal Loan Agreement Between Friends
  4. Demand Letter for Payment Sample