What To Do When Someone Owes You Money
You’re likely reading this blog post because you find yourself in the unenviable position of being owed money by someone that doesn’t really intend on paying you.
It could be an individual, such as a friend or relative, or it could be a business or organization. It may even be someone that used the money to start a business.
In any event, you feel frustrated that you haven’t been paid back the money you lent in good faith, and you feel disappointed that you were treated in such a way.
Right now, your priority is to get back the money you lent. But, you’re unsure of the best and most effective way to do so. Here are a few options you can consider when someone owes you money:
Offer Installment Options
You might find that the individual, business, or organization to whom you’ve lent the money cannot afford to pay you back in one lump sum. If that’s the case in your situation, one way to get your money is by asking for it in installments.
If you come to an arrangement where they can make affordable weekly or monthly payments, you’re far more likely to get your money back, albeit over a specified period.
Offer Bartering Options
Installment options might not be ideal for some people or entities as they may have a severe cash-flow problem. However, another way to get your debt repaid is by bartering or “doing a deal” with them.
For example, instead of having the cash back, they could give you goods whose value is equal to or more than the amount of money you lent them. You could then use those goods or sell them to get back your cash.
When you lent the money you’re trying to recoup, you might have made the golden mistake of not specifying a time by which that cash must get repaid to you. It can feel challenging to ask for the money back when you need or want it in those situations.
One way around that problem is by expressing some urgency. For instance, you could say that you need the money to pay for some urgent repairs in your home.
If you’re a business, you might say that you’re experiencing cash-flow problems and could do with the money back very soon.
Seek Legal Action
What happens when all attempts to retrieve the money owed to you have failed? In those cases, you may not have much choice but to consider legal action and have a court of law assist you.
You could hire a judgment collection attorney to show your debtor that you’re serious about wanting your debt paid, and if the person or entity that owes you money still won’t pay, your attorney can sue them for you.
Give A Deadline
Lastly, you could always consider giving your debtor a specific deadline. It’s something you should do whenever you lend any money to any person, business, or organization, but it’s not too late to do so if you’ve already lent the cas