There’s been a point in all of our lives where we’ve found ourselves short of funds because someone who owes us money hasn’t paid us when they should have. Now, if we owe other people or institutions money, we have to sign up to all sorts of payment plans, repayment agreements, and incur charges and fines if we don’t cough up on time. So we should take our personal finances equally seriously. If you are owed money, it’s time for you to claim it back! Here’s everything you know to achieve this!
Money from Friends and Family
Many young people will happily lend money to their friends and family should these people find themselves in a time of need. But this is behaviour that you should be relatively wary of, and is something that many people grow out of through experience. Sure, you could lend your friend or family member money and they could behave in an appropriate manner and pay you back the full sum on time. However, there’s a slim chance that this will actually happen and there are various reasons for this. Firstly, as a friend or family member, you’re not going to charge interest on any money you lend to your loved ones. You are also highly unlikely to charge fines or fees should they not stick to an agreed payment date. This means that there are no negatives that come hand in hand with paying the loan back slowly or late and completely diminishes any sense of urgency that might otherwise be instilled in someone who has borrowed money. It could be weeks, months, or years until you take back what you are owed in full. What’s more? When you borrow money to friends or family, you’re highly unlikely to have a legally binding agreement. This means that the individual you have borrowed money to could walk away without repaying you should you have a disagreement or fall out. If you do have a legal agreement between yourself and someone, you will have good legal footing and should find out how to sue someone who owes you money. But again, this can make tensions rise and damage your personal relationships. So, the best piece of advice is to avoid getting financially involved with people you want to spend time with!
Money from Clients and Customers
If you are self-employed or have set up your own business, you may find that you are owed money from a client or customer. Reclaiming money from individuals who you have a professional working relationship with does tend to be a bit simpler, as you don’t have to worry about hurt feelings as much. A good way to reclaim money from clients and customers who have not yet paid what they owe is to send a reminder invoice. Remember that many clients will be dealing with numerous people on a daily basis, and paying your fee may have simply slipped to the back of their mind. An invoice reminder will encourage them to pay without stalling or kicking up a fuss.
Being owed money can be extremely frustrating. But hopefully, the above steps will serve to make reclaiming cash a little simpler.