How to Collect an IOU
Collecting a debt from a friend, relative or colleague is always an uncomfortable undertaking. Having to ask someone to repay a debt after a lapsed deadline can put a tremendous strain on any relationship, especially if the friendship is valued. But you can end a frustrating wait for an outstanding IOU and maintain the integrity of the relationship. With a little understanding and a lot of forthrightness, you can keep your friend and get your money back.
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Instructions
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Ask your friend, colleague or relative if they need more time to repay the debt. Give them the benefit of the doubt in case they forgot the agreed-upon repayment date and offer an extension.
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Use a direct tone of voice to let them know you are serious if they haven't repaid the debt by the time the extension deadline arrives. Give them a final ultimatum and demand they repay the debt. Tell them you are disappointed in the way they handled the situation, but that you are still open to forgiveness and moving forward if repayment is made.
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3
Pursue legal action. Take action in small claims court if the loan was large enough and especially if you have a promissory note or proof of the loan agreement.
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Tips & Warnings
Pursuing legal action may do irreparable damage to the relationship, but could be the only option if communication has broken down and you have not received repayment.
Make a decision about the future of the relationship and perhaps suspend or limit dealings with them. Do you really want to continue a relationship with someone that does not respect an agreement? At the very least, decide that you will not loan them money again.
