When money and debt enter a relationship, it can change it forever- especially if it is a friend. Lending money to a friend can be tricky, and it can get even trickier if they do not pay you back right away.

Money can often ruin a relationship if the conversation turns sour, and these are circumstances you want to avoid. While conversations about money can turn awkward, it is always best to be clear and upfront with your friend to avoid any awkwardness.

If you have lent a friend money and you need the debt to be repaid, don’t shy away from what you need. Check out these tips for how to ask a friend to pay you back.

Tips Before Lending Money to a Friend

Before lending money to a friend, there are some nuances to consider. If your friend needs money, they may state a specific reason. Often, the most common reasons why a friend would ask for money are:

  1. To Pay Bills or Rent
  2. To Cover a Medical or Veterinarian Bill
  3. To Help Prevent Foreclosure or Vehicle Repossession

Regardless of their reason for needing cash, it is a request you should take seriously. Before lending your friend money, consider these factors ahead of time:

  1. Their Financial State: While it may seem uncouth to ask about your friend’s finances, it is a necessary part of lending them money. Do they have a job? Do they have a track record of rocky finances or lack of financial stability? While a friendship is personal, lending money is a business exchange. If it is a significant amount of money that you expect to be paid back, a contract must be made.
  2. A Payment Plan: Before lending your friend money, it can be helpful to talk about a payment plan. Be clear that this is a loan that you expect to be repaid and not a gift. Depending on the amount of money in the transaction, both of you can create a realistic payment plan. It could be paid back in small amounts, or it could be a lump sum.
  3. A Deadline: If the payment plan is a lump sum, it can be wise to create a deadline ahead of time. This can help your friend get a realistic idea of when you expect to be repaid.

Tips for How to Ask a Friend to Pay You Back

Lending money to a friend can be complicated, especially if there is no payment plan or agreement in place. While it can be tough to know how to ask a friend to pay you back, there are a few foundational tips that can make the process easier for both of you. When you need the loan repaid and they are not holding up their end of the bargain, consider these tips:

  1. Meet in Person: Ask your friend to make some time for you and meet in person! Communication over text or the phone can often be a way for them to avoid the situation, or even create some miscommunication on both ends. Discuss the matter with your friend face to face and voice your concerns. Do not do this in front of other friends, as it can create drama. Try to keep it casual and ask your friend to meet you for coffee or lunch. If your friend seems uncomfortable, let them pick the place!
  2. Communicate with Kindness: While this is a stressful situation, remember that they are still your friend and treat them with kindness. Be direct but be fair. Voice your concerns from a place of kindness, even if you are angry that they did not pay you back. Your friend may be going through circumstances that you are unaware of.
  3. Remind Them What You Need It For: If you are like most people, you may not know how to ask a friend to pay you back. The easiest way can often be to be direct and give your friend a reality check. While you were kind enough to lend them cash, you do have bills and expenses that need to be paid. Be direct and remind them that you are not a bank that has expendable budgets and cash to lend out. You have your own financial obligations, and your friend may need a reality check.

What Can I Do If They Do Not Pay Me Back?

While you may have learned all the tips on how to ask a friend to pay you back, it doesn’t guarantee that they will. If your friend keeps dodging the situation, you need to make a decision. Is this something worth ending a friendship over? Do you accept your loss and move on? This may be a stressful situation and a lot of money to lose, but here’s what you can do next:

  1. Accept a Different Payment: If your friend cannot afford to pay you back, there may be other ways that they can. Babysitting, dog sitting, house cleaning, or other methods of trade can be used to pay you back. This can help your friend relieve their financial debt, and you can keep your friendship.
  2. Consider Legal Action: Depending on the amount of money, you could take legal action and take them to small claims court. Hire an attorney and send them a notarized letter asking for repayment in a specified time period. This can let them know you are serious and mean business. Send this letter by mail courier to ensure it reaches its destination. This should only be the last resort, as it will likely damage the friendship permanently. If you are choosing legal action, keep records of all of your conversations and proof of lending. Take care to document proof that there was an agreement between your friend and yourself to pay the money back by a certain date, and the date has passed.

Is a Title Loan the Right Option if My Friend Does Not Pay Me Back?

Depending on the amount of cash your friend borrowed, it could have left you financially stressed if they are not paying you back. Instead of hounding them down for the cash that is rightfully yours, you could turn your car’s title into cash! While your friend may still pay you back, in the meantime you have bills to pay and payments to make. If you are short on cash this month and do not know when your friend will repay you, a title loan could be the perfect way to get the cash you need in a financial emergency.

Title loans are collateral-based loans that will allow you to access the equity in your car. The more your car is worth, the more you can potentially borrow through a title loan if your income supports it! If you have found yourself struggling after a friend has not paid you back, consider ChoiceCash Title Loans.

What are the Requirements for a Car Title Loan?

Unlike many traditional loan options, a car title loan can have easy initial requirements. While the first requirement of a car title loan is to have a paid-off or close-to-paid-off vehicle, there are a few others. To qualify for a car title loan with ChoiceCash Title Loans, you must meet these requirements:

  1. Age Requirement: Borrowers must be over the age of 18 to apply for a loan.
  2. Vehicle Requirement: Your car must have a certain amount of value to borrow from, and the car’s title must be in your name.
  3. Income Requirement: While you do not need a traditional 9-5 job to apply for a title loan, you will need to be able to prove that your income is stable and that you can afford a loan.

Where Can I Apply for a Title Loan Online?

Learning how to ask a friend to pay you back can be tough. Fortunately, the approval process for a car title loan with ChoiceCash Title Loans is easy! It can be just three simple steps for your convenience:

  1. Submit a Loan Inquiry Online, or Over the Phone
  2. Send in a Few Documents to be Verified
  3. Get Approved and Get Your Cash!1

Qualified borrowers can get their cash in as little as 24 hours!1 So why wait to see if your vehicle will qualify for a ChoiceCash Title Loan? Get started today by going online, or by giving a loan agent a call at 855-422-7402.