Loans what to do when Friends and Relatives don’t Pay you Back

Shakespeare wrote “Neither a borrower nor a lender be.” This statement is not idly made. If you, as friend, borrow money from a friend, that friend,because of his indebtedness, becomes alienated from you. You are in debt and no one likes to be in debt, particularly from a friend. This state of affairs does harm the friendship and in some cases, where the debt is substantial and cannot be paid, may cause a breach.
It is one thing to borrow from a bank where the loan is of an impersonal nature and is protected by a contract but borrowing from family or friends suggests that the person borrowing from you, may be aware of a kindly nature where, if the loan becomes difficult or impossible to repay,knows that you will not want an embarrassing scene to be made. In some cases, the lender may wipe the debt so as not to cause humiliation to the friend. Additionally, a loan once made and repaid may lead the borrower to try again at a later date saying,”Well, I repaid the last debt which shows that I am trustworthy.”
This may well be the case but circumstances may change later on and difficulty in paying maybe the result next time.Small amounts, of course, are not of a concerning nature and, throughout everyday life, this petty cash is given rather than loaned between friends and family. Indeed, if this were not the case, the world would be full of Scrooges!
A substantial loan may cause a borrower to avoid a friend with whom the transaction has taken place and, as time goes by, what was once a valuable friendship, will turn sour. The friend who lends loses, not only his or her money, but a beautiful friendship as well.
If a person is in need of funds perhaps looking around the home to see if there are any personal belongings that are no longer needed. These could be offered at a garage sale or advertised in the paper, serving two purposes. The satisfaction of obtaining money which does not have to be repaid and, disposing of clutter.
The best solution, of course, is to budget so that this undesirable situation does not arise.