Collecting Debts From Relatives

Discussion in 'Debt Collection' started by tpicks, May 21, 2016.

  1. tpicks

    tpicks Member

    Have you ever had to go collect debts from a relative? This question may sound bizarre, but seriously business is business and for it to survive friends, family members and relatives should pay for goods and services. They may however enjoy a special discount.

    If you ever had to render services or goods on credit to a relative who for one reason or the other is defaulting in payment how would you go about collecting such a debt considering the family factor. I can't imagine how the experience would look like. As a prospective businessman I think I'd like to know best possible way(s) to handle this kind of a situation.
     
    Last edited by a moderator: Jun 24, 2016
  2. Alexandoy

    Alexandoy Active Member

    This is one of the hardest collection and you need not be a debt collector to experience. Actually I'm talking about relatives and friends, the people closest to us who borrow money and some of them who refuse to pay. I have lost some relatives to loans. All they did was to simply forget their debt as if there was none. And some relatives have the temerity to borrow again as if it's my obligation to help them from time to time.

    When you borrow money from me and you did not pay on time, I would only ask for the payment once, maybe after a week of the promised day. And that's all. Whether you pay or not, you wouldn't hear from me anymore about that loan. But if you do not pay then you are blacklisted already.
     
  3. melik

    melik Active Member

    If I'm lending money to someone who is a very close member of the family then I wouldn't have the courage to ask for the money back, and I'm already counting on not seeing that money back ever. Friends on the other hand are fair game, if they don't pay me back and if I learn that they do have the necessary funds to do it, but they just choose to spend it on something else, it would be the end of the friendship, as they would prove to be untrustworthy.
     
  4. tpicks

    tpicks Member

    What if it's a huge sum of money that can't just easily let go and what if you already had future plans for the money. Sometimes conditions may demand lending a big amount of money to family members in high hope of getting it back since it's quite beyond that amount we can afford to forfeit.
     
  5. anupama

    anupama Member

    I agree with you. Even I would find it hard to ask for the amount from a family member. I have lost some amount due to this. Some people have the tendency to ask for money and then forget about it. Or maybe they take you for granted. My problem is that I cannot say no to a family member. This sometimes becomes very difficult. I want to say no but am not able to do so.
     
  6. GraceB

    GraceB New Member

    No, because I never lend money to relatives and friends. If they need it and ask for a reasonable amount, I just give it to them, and won't be expecting it back. If they pay it, cool, but I won't stress over it.

    If they we're to ask, let's say, $10,000, I wouldn't agree to that because it could just cause problems later down the road, and I rather take their initial frustration on me than lose their friendship over having to collect the money back.
     
  7. tpicks

    tpicks Member

    This is one sound point I note, I wouldn't like to lend that amount of money I can't afford to loose to a relative or a family member. Also among friends I'll be very careful who I lend money to and how much I lend out. I don't want unsettled debts to smear the good relationship I have with my family members, relatives, as well as friends.
     
  8. Decentlady

    Decentlady Member

    Any monetary exchange among relatives are toughest to handle and many causes discomfort while collecting the cash back. Since relative assume it's okay to pull on without paying promptly it often causes bitter relations when one has to constantly remind them to give the cash back. Unfortunately, it is also not very easy to charge a penalty to your relative. The best is to avoid lending cash to any relative.
     
  9. melik

    melik Active Member

    Yeah, the way I see it, it just doesn't make sense to lose a relationship with a family member for something like money. It's just not worthy of the risk so it's better to stay away from doing loans to relatives especially if they are very close to you, unless is an emergency and in that case you obviously have no other choice than giving them money.
     
  10. remnant

    remnant Member

    I have not ever advanced credit to a relative. It would be better to help out to the extent you can rather than enter into a binding contract. The worst thing is that the claimant looks like the villain and it has the potential to create faultlines and social schisms amongst family members. But at the end of the day, business is business and if the contract is legally abiding, make use of an arbitrator. If that fails, I would let the law run its course. This however can't apply to a close relative.
     
  11. Decentlady

    Decentlady Member

    So just yesterday we visited our relative to remind them of the debt they are to pay us. Guess what! She was like, "..didn't I already paid you the half of the amount?" I wanted to smash her face knowing that she hadn't even paid a penny and not just to me but even other creditors. We supported her when she was in do or die situation and this is how they respond.

    So now I told her she has to pay the full sum plus one year interest and spoke of the same to her father!

    People aren't grateful but plain greedy! And to think that we have built a shop for them, rent free, and they use stolen electricty! Not to mention got her husband detoxified and from alcohol and treated when he was on death bed and noone else cared including his own children! So much for service to humanity.
     
  12. Binu

    Binu Member

    Some people are so ungrateful that they do not accepet that they had sought help and burrowed money from us. However, there are many people who take monetary help during the hard time and payback in the set time and continue to thank us for generosity. Those people who do not return debt may benefit temporarily, but in long run they will suffer. If they continue to do that once day there will be no one who is willing to help them. I have met few people in life who never returned the debt/
     
  13. Ghost_Writer

    Ghost_Writer Member

    This is a very annoying situation. Although I have never experienced it, it must be very complicated to have to collect a debt of a family member (but I think it can be a relatively easy situation depending on the degree of relationship between/among the members involved).
     
  14. ReadmeByAmy

    ReadmeByAmy Member

    When it comes to borrowing and paying the money that is owed, granting and collecting debt to family members and relatives is the most difficult to handle. There are times just because of this thing your personal relationship will be affected which all of us does not like to happen. That is why when you are borrowing money either from your family members, relatives, friends and to other institutions make it sure to fulfill to pay your obligation when it falls due so that there will be no conflicts that will arise.
     
  15. Carmen

    Carmen New Member

    I do not believe in loaning money to family and friends. This is a recipe for disaster and most certainly will destroy relationships. The best thing to do when there is a monetary factor involved with someone whom you have an emotional attachment to, is to remember that no matter what, this person is more important than money. If I can give you what you need, I'd rather go ahead and give you the amount that won't make or break me. This way if you are not able to repay there will be no hard feelings. Our society has lost touch with the importance of what life is really about. Money should not be allowed to destroy and ruin relationships. Don't let this happen to you.
     
    Alexandoy likes this.
  16. Alexandoy

    Alexandoy Active Member

    It is sad to say that my younger sister has that habit of getting a loan from people and later on she would do anything just to avoid paying. When she arrived in the US as an immigrant, that habit persisted. A cousin who helped her complained to me that my sister had owed my cousin's friend $2,000 and is not paid. My sister had left for another state hence my cousin's friend realized it was hopeless to collect. With me, my sister owes me money since a long time ago but I have come to terms with it and it serves as lesson to me.
     
  17. Nocturnal Writer

    Nocturnal Writer Active Member

    Personally speaking this may seem an awkward if your relative is very hard-up in his way of life. You would be caught in between either to collect the payment for his debt or to condone it in his favor. However, business is business. What is due should be paid.
     
  18. vinaya

    vinaya Member

    I have given credits to many relatives and I have also burrowed money from many people, however, I never have had any sour relation while burrowing or lending money. Before you burrow or lend money, you should clearly state the terms of paying, for instance the interest and time frame. If you cannot pay in time you should explain your circumstance in advance.