You loaned your friend some money. They even signed a promissory note to get it back at the end of the month. Suddenly the friend doesn’t put a single effort into giving back your money. They’ve refused to return your phone calls or even reply to your text messages.
What’s worse? They shamelessly let it slip off their mind until you remind them to pay up. It is tempting not to threaten them with physical violence, or something worse. These tricks will help you apply pressure to them without feeling the need to get physical when collecting a debt.
When Clients Owe You
Have you ever been hired for work by a client who demands perfect work and wants it completed in a timely fashion? If you are a work-for-hire type or a contractor, you can easily relate and understand the feeling when they don't reciprocate by paying up on time.
Sometimes you have to remain professional and keep your feelings out of the job. But then you're still human, and it's not unusual for you to feel personally insulted (it is actually an insult on your person if you look at it). Here's what you can do when a client owes you: Flood them with an invoice every 7 days until it becomes apparent to them you are clearly unhappy and feel bluntly ignored at this point.
If they fail to respond, inform them you’re sending out a “final invoice” – then attach a note to the invoice about your taking them to a claims court unless they respond to you within a given number of days (specify the date and time). What if this doesn't work? You ask.
Make sure you follow through until you make right your threat. This strategy should work (cross your fingers). If it doesn't you can follow through your threat with an additional threat to report them on their social circles. They’ll give you an ear as this might affect their reputation.
When Friends Owe You
Most people have a debt-forgetful friend that owes them a thing or two – could be in the form of money or item. To nab them you need to employ some creativity.
You can consider, for instance, inviting them for dinner, and make sure to order food portions (for them) that matches your debt. Of course, they’ll grumble or even make a fuss when the check comes, and you mention you want them to pay.
But take things to the next level and further insist you’ve strangely forgotten your wallet. Make it seem like a strange coincidence at this point. Remind them about washing evening dishes if they don't pay up the check. The idea is to make a hard sell for them.
Alternatively, you can involve a mutual friend to get back your money especially if they hold some leverage on them. And it's even better if they are roommates because you can ask their friend to pay you the debt owed, then have their roomie pay the balance. For example, the pal can have your debt-forgetful friend pay the internet’s bill for that month to cover the balance.
When Family & Relatives Owe You
Everyone warned you about financing Cousin Jack’s auto loan. Now they are all hysterically laughing at you because he spent all the money drinking himself silly like they knew he would.
If you have zero ideas on how to get back your money, device a plan that involves getting Jack to pay up a few bucks each time you meet at family functions. If this plan proves difficult and unreliable, you can make Jack work for you to repay off the debt. Offer him some suggestion if he is not able to pay back due to some problems or low credit score that take help of an online bad credit lending service that easily can fund some money in urgency , he can payback that lender later .
Or better, you can get creative by having him do embarrassing tasks like wearing a swimming costume to your family’s event if they want the $150 loan waived off.
When Corporations Owe You
When asking for your money from customer representatives of a corporation, make sure to maintain firmness. Shed away your sensitivity and decorum, if you can. Make incessant calls to the decision makers and send out a plethora of “loud” emails to get attention.
Getting a refund from a corporation can be a real struggle at times. But it doesn't have to be. Take it to social media to get your refund. This will definitely get their attention and the powers that be might have you get a refund immediately to avoid further embarrassment.
However, you need to arm yourself with receipts and hard evidence to prove that the corporation actually owes you a certain amount of money. Sometimes a corporation can bully you so as to suppress your voice about the situation, even sometimes threaten your life.
If this happens, file a complaint with the police or better yet, the Better Business Bureau (BBB), which is equivalent to having an aid suspending a bully on the account of beating you while in school.
If the amount owed by a company is somewhat insignificant or is a piddling amount, you can consider letting the debt hang over their lives till kingdom come. It may be a difficult decision to make but a worthy move nonetheless – because you’ll never see your money again…
Sometimes you don't have to lose sleep about friends or corporations who owe you little amounts of money that they seem not ready to pay up.
A prudent move would be to Forget about the money indefinitely and consider the price you pay as having not to deal with interested parties again – on anything regarding money.
One final thing
Remember it's important to remain persistent and shameless when collecting your debt from say a close acquaintance, clients, relatives or even a company. Just don't be tempted to apply physical violence as part of debt collection lest you wish to spend precious time in jail.
The above tricks should help you collect money owed by applying some little pressure. Debt collection is an art in itself that requires patience and just the right amount of pressure depending on the amount of debt involved. However, it's easy to let your emotions take centre stage.
In such situations, hire a debt collection agency to help get your money back then pay them a small fee for their efforts. They will figure out a way to get your money back from your borrower without having to land anyone in prison.
Always practice financial responsibility to make good on all your debts in future because, really, someday you’ll owe some people money, and they’ll want you to refund their money back without necessarily having to remind you about it.