Personal Debt Collection Is Never Easy

It happens all the time. You loan a friend or family member some money with the promise that they’ll pay you back in a week or two. That week passes, then another one and soon a few months have passed with not a payment in sight. These personal loans have ruined many friendships and many family relationships. Personal debt collection is something nobody wants to think about. You shouldn’t have to worry about personal debt collection from a friend or family member. You don’t want to harass them but you need your money. You lent them that money out of the goodness of your heart and they have misused your trust. This leaves many feeling angry, hurt and betrayed. However, you have a few choices when it comes to personal debt collection. Some are nice and some, unfortunately, are not so nice. But these should help you retrieve your money that is owed to you.

Be Nice

If you haven’t been paid what is owed to you, and you’re about to engage in personal debt collection, do not call the person. Everyone knows that it’s easy to hang up on someone or to dodge a phone call when a debt collector calls. Go visit that person face to face, if possible, and tell them your intentions. You are here on a personal debt collection basis and you want your money. Be nice, be completely polite and you’ll be able to see right there and then if they intend to pay you back or not. Even if you have to set up a payment plan, at least you’ll get your money. This should work for all personal debt collection cases, unless the person never intended to pay you back. That’s when it’s time to be not so nice.

Small Claims Court

Hopefully, if you’ve loaned out money to someone, no matter what the amount, you have recorded every transaction and had the person sign it. That way, you can take them to small claims court and get a judgment against them. The judge will make them pay because you have proof of the loan and lack of payment. Unfortunately, many people don’t have proof of loans that they give to friends or family members because they trust them. They don’t feel that they need to keep records. This happens much too often. You can still try court if you don’t have records but this will make a personal debt collection case much harder to prove. There is one more way you can try to collect your debt, however.

Take Collateral

Many people who are owed a debt from friends and family, when their initial personal debt collection attempts have failed, decide to take something that is worth the amount they’re owed. This is called a lien. Tell the person they’ll get the object back when you get your money. Obviously, this takes guts so it’s not for everyone but if you’re serious about your personal debt collection, you’ll go to any lengths to get paid back.