Inspired by some friends who talked about the difficulty of collect their debt, so I would like to discuss this topic. All of money matters is very sensitive , especially when it comes to debt payments. Friendship and even brotherhood relationships could break up because of money problems. As the other side, you certainly uncomfortable to collect the money to your friend .
"I felt like a beggar - collecting collecting my own money ," a friend complained to me . Another friend said , " I hate to see my friend who owe my money, he buy a new gadget and travelling to another country , Instead of paying my money ! " .
Well, this is not cool when we lend money to others (without interest), we usually do intend to help . Moreover, if our friend talking about their financial problems, which makes our heart moved to help .
So, how can we lend money to friends without making ourselfes bankrupt? Here I am sharing some tips:
Lend according to your ability
Although we have extra money, in fact we are not Santa Claus :). Our family needs is the most important, so make sure that the money we lend doesn’t interfere our daily routine budget , including school fees , mortgage debt , and savings .
Set time period
Sometimes we can feel bad to set the repayment period to our friend. But it is necessary for the convenience of both parties . Try to give the loan deadline , or offer a refund scheme options , such as monthly installments for 1 year .
For those of you who have relatives or friends who often borrow money , it is better allocated budget every month .So you can lend it without too expect the money back . The fund could continue to grow if noone borrows, or if the previously borrowed funds have been returned .
Create a promissory note
For loans in amounts large enough , try the promissory note is stamped . This is to ensure the safety of your money . Write down this debt loan agreement detailed in the letter of agreement . No need to feel bad, after all the money spent is your money , and you definitely want that money back .
Collateral can be used for a considerable amount of the loan . With the collateral, the borrower will be responsible for the debt , and high enough to prove its commitment to pay the loan later . Discuss the collateral whose value is relatively equivalent to the amount of the loan, and the loan period set .
Looks complicated ? Sure. It’s better a bit complicated in the front , but your financial still running well. Do not forget to communicate well so the relationship with the borrower remains good .