Debts are inevitable especially within the Filipino culture. It is like a part of their lives. This is especially true among Filipinos who are considered to be in the middle to lower income bracket (and even in the upper bracket). There are a lot of factors why people engage in debts or loan a considerable amount of money. The loan can either come from a friend, a family member or a credit institution.
Loaning money is not bad at all as long as it is paid back on a given promised time. Logically, the person who owes money should not be reminded anymore. However, by some acceptable and unacceptable reasons, there are really individuals who cannot return the money on time. This makes it more complicated and the one who lend the money is left with a problem to be solved.
Collecting money is not an enjoyable thing to do at all most especially if the one who owes you is a family member or a good friend. Nevertheless there are ways to make people pay by being assertive yet not threatening. Being cool and civil without being inefficient. Besides, it is your own money so do not hesitate to get it back as this will have consequences too. You do not want this to happen anyway. Thus, below are effective tips to make people pay the money they owe you. Use these tactics and you hopefully you will get your money just in time.
Determine right timing
Timing here means two things. First, it can be providing enough time for the person to give his payment if there seems to be a delay. Always, give the benefit of the doubt that something might have happened that caused this delay. By giving ample time, this conveys understanding and consideration. Second, timing here might refer to the right day and time to remind and then collect. If the person is working, reminding him or her days before payday is a subtle and better manner as compared to demanding payment right away or at a time early or late. By employing this strategy, relationship is not strained especially if the person is a loyal customer or a good friend because the timing is apt and fitting.
Writing a letter
This is an elusive way to let them know that their payment is also seriously needed. Explaining that particular need in writing can be an effective approach to let them feel your urgency as well. It can be written on a friendly manner and tone but can sound persuasive and imperative at the same time. If you have time, compose the letter on a time that your mind is clear but do not get too emotional. This may send a different message.
This is the ultimate key in getting your money back. Insist firmly so they feel the pressure and annoyance but still remain tactful and nice at all times. With this, they might find ways to pay you so they could get rid of your irritating presence (which is the goal actually). This may sound funny, but this can be a rewarding strategy. Who cares, you have been paid anyway.
If paying in full amount is impossible, try offering payment schemes that are beneficial for both parties. In this way, at least you will be assured that the entire amount will be paid off. Keeping a perspective of their situation brings positivity to the debtor and will push them to find ways to pay that debt. Sometimes a little understanding is just what they need.
Offer other alternatives such as bartering, etc.
The last recourse to this collecting problem is to provide reasonable alternatives to this individual who owes you. If in any case you have seen the possibility that the person cannot really produce the money to pay, then resorting to some better alternatives is a good option. These alternatives might include bartering – this can be in a form of material possessions that relatively has some worth and value which is in a way equivalent to the money owed. Things such as jewelries, watches, gadgets or anything that has value and can be converted into cash. At least, you are not left with nothing at all.
If all of the above strategies has been deliberately done and still with no response, then this is the time to call for legal actions. Please be sure also that you have a written document to prove that a certain agreement between you and your debtor occurred and that until now, the promise to pay has not yet been done.
To sum up, to lend money is not an easy task because the consequences can be many things including the relationship. Not to mention the sum of money that it takes to ruin this relationship. So, the trick here is sincerity and patience. Do your part in the collection and if it ends in a bad way, then let it be.