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Debt Collecting – Steps To Take If Someone Won’t Pay You Back

We’ve all run into rough patches when it comes to money, so there is no wonder why so many of us take pity on a friend or family who is struggling to pay off debts. In fact, many of us have leant a close one money in the past. However, what happens if they are very slow paying you back? Or what if they don’t pay you back at all?

If someone refuses to pay you back the money that you are owed, you may think that there is nothing you can do to get out of this awkward situation. But don’t start worrying just yet! In fact, there is plenty that you can do. For starters, here are a few very useful tips!

Talk To Them Carefully

We are all in completely different financial situations, and some of us are doing much better than others. If your friend who you lent the money to is still having a hard time financially, you should chat with them. They might be able to explain why they are currently unable to pay you back. And once you know all the facts, you might be happy to leave them for another couple of months until they are in a better situation to pay you back.

Establish A Payment Plan

If you had lent your friend or relative a large sum of money, they might have problems paying it back all in one go. For this reason, it could be beneficial for both of you if you set p a structured repayment scheme. There are many different benefits of structured settlement vs lump sum, but the main one is that it will help your friend to pay the money back. That’s because they will pay you back a small amount each month until they have paid off their entire debt.

Seek Mediation

If you have been through these first two steps and it still doesn’t look like you are going to get your cash back anytime soon, you need to find some help with this matter. And the first place to turn to for help is a mediator. This is an impartial person who is trained in dealing with people on two opposing sides. They will act as a referee in the middle of the dispute. There are various different mediation programs depending on where you live, but you can find out more information about them online.

Settle In The Courts

If a mediation service doesn’t help you either, you will need to take your dispute to the courts. It is now easier than ever to take a claim to the court, and you can even start the process online. Simply Google to get to your local courthouse’s website to find out what steps you need to take next. If the court decides in our favor, then your friend or relative will be ordered to pay you back straight away.

You don’t have to live with debt for too long; just use these steps to get your money back!