Set Concrete Deadlines To Get Borrowed Money Back From Friends

It's common wisdom that it's not a good idea to loan money to a friend, but sometimes it's simply something you have to do. When that's the case, CNN recommends you provide a concrete deadline so you actually get that money back.

Picture: Martin Cathrae/Flickr

While the general rule is that you shouldn't lend money that you expect to get back, sometimes it just has to happen. Trying to get that money back can make for a seriously awkward conversation. In order to avoid potential awkwardness down the road, CNN recommends simply setting up a deadline at the outset:

Specifying a schedule for payback is crucial. Otherwise, the loan may hang out there indefinitely, even if the borrower has given lip service to paying you back — and you'll just have to revisit the conversation at a later date.

Obviously, the best course of action changes a bit depending on the circumstances, and you can do a few things to make that transaction easier. Head over to CNN for a few more tips on making that awkward conversation a little smoother.

How to ask a pal or relative to pay you back [CNN via The Consumerist]


Comments

    I would go even further if the loan is more than 100 or more than one month, then charge interest.

    If they buck at this then say "If you want me to act like your back, why should I loose money on the deal? Because the money I am giving you has not been sitting in a box waiting to be loaned to you."

      Good luck maintaining a good relationship with those friends, buddy.

        If they think of me as an easy target for a 'loan' then I don't think I'll be crying too much at the loss of the friendship.

Join the discussion!

Trending Stories Right Now