I have debts with my friends and scare me with judgment. How can I tell them that I earn too little to pay back what they demand? “
This is a common problem. People are indebted to friends, most often because of the bank’s refusal to grant a loan. The end of friendship and the big problem comes when they don’t give up money. Is it easier to pay off private debts than bank liabilities?
Privately, it’s not always better …
Someone would say that you can just walk over and ask for payment in installments. Of course, there is such a possibility. But what if the friends who lent us money do not want to talk because we have repeatedly delayed repayment? In such situations mediators come to the rescue.
Who are? They are professional negotiators. Their negotiations, however, look different from those we would have undertaken ourselves. A mediator is first and foremost a person who resolves disputes – in our case the financial ones – helps in defining interests, reaching a common agreement and solving the problem so that both parties are satisfied.
I will send a debt collector!
If you were signing the loan agreement and you did not pay it back on time, there is a chance that your friend will use the services of a debt collection company. Will the mediator help in such a situation? Yes. Here, the case looks almost identical to any financial institution.
Negotiations will take place with a debt collection company that will try to recover the debt on behalf of its client. The mediator, acting on your behalf, will try to reach an agreement and will try to ensure the best repayment terms.
Goodwill and willingness to pay back is half the battle. It is worth negotiating – if not by yourself, then with the help of a mediator – because the lender will make this solution easier and will not have to incur additional costs by commissioning debt recovery to debt collection companies.
The debtor will gain comfort and the awareness that a specialist will deal with his case, thanks to which he will not have to fear debt collectors or court orders.
Between a rock and a hard place
Typing in the search engine “repayment of private debts” pops up a very long, almost endless list of online forums, where embittered lenders ask how to recover the debt, because a friend has broken all contact and does not want to pay the debt.
Most of these messages indicate a lack of agreement on both sides, and of course there are various situations, often private, that complicate the matter. However, it should be remembered that the law applies not only to liabilities to banks, but also to private debts.