In interpersonal interactions, lending money to friends or others is a common phenomenon. However, when the money lent is not recovered, this kindness can turn into embarrassment and annoyance. What should we do in the face of this situation?
Communication is the key to problem solving. Have a peaceful conversation with the borrower to understand why they are not making repayments. It may be because they are experiencing temporary financial hardship, and this is when a mutually acceptable repayment plan can be negotiated. If the other party does not intend to repay the loan, you need to clearly state your position and inform them of possible measures.
Use documentary evidence to protect your rights and interests. If there is an IOU or contract at the time of the initial borrowing, this will greatly increase the likelihood of debt recovery. If there is no written agreement, you can try to ask the other party to write it again to clarify the debt relationship.
Harness the power of third parties. When personal communication is ineffective, legal recourse can be recourse. Consult a lawyer for professional advice and, if necessary, pursue a lawsuit in court to recover debts. In addition, it is also possible to seek the help of a mediation agency to reach a settlement through third-party mediation.
As a precautionary measure, avoid similar situations in the future. When lending money, be sure to sign a formal loan agreement and leave a valid identification of the other party. At the same time, you should do what you can and lend an amount that you can afford to lose.
Dealing with non-repayment of loans requires patience and wisdom. Keeping a cool head, using legal means reasonably, and insisting on one's own rights and interests can usually achieve the desired solution. Remember, precautions and a cautious and clear written agreement beforehand are the best strategies to avoid such problems.