What to do when your friend owes you a few
We all want to do our bit to help our friends and family, and we’ve all heard that all too familiar “I’ll pay you back later”. But what do you do when later never seems to come around?
According to a new report by finder, 1 in 4 Australians are waiting on a friend to pay them back. The numbers account for roughly 24% of the population, or 4.8 million people. Though the problem is by no means limited to the nation.
The most common unpaid debts (all at 6%) fall under the categories of gifts, bill splitting at a restaurant, and event tickets. Sharing ride services (Uber, taxis, etc.), travel expenses, and gambling activities are close behind - making up 5, 4, and 3% of the reasons for lax repayments respectively.
"Our research reveals that millions of Aussies have borrowed money from their friends with no intention of paying them back,” Finder’s money expert Sarah Megginson said of their findings.
"Not repaying money breaks trust and can put strain on the relationship, but it could also cause financial problems for the friend left shouldering the debt."
There is, however, hope for those still clutching their receipts and waiting, with Megginson sharing some top tips to help people get back what they loaned out.
"Your first port of call should be to ask your friend to repay the debt,” she said. “It can be a bit uncomfortable bringing up the topic of money but if you don't ask and then you're resentful, that can be more damaging to the friendship long-term.”
She then explained how you may have to avoid paying for them in the future, and that re-setting boundaries with some of the people in your life would be of benefit to both parties, as well as having an honest conversation with them about it all.
However, if the situation is more serious than a taxi ride or a friendly brunch, further action may be necessary, especially if a large amount of money is involved.
"You can send a letter of demand, clearly outlining how much you are owed and asking that it be repaid within a certain time frame,” she suggested of the worst-case scenario, “otherwise legal action will be started.
"If you receive no response you can lodge a claim with your state or territory's tribunal for resolving matters like this.”
Megginson added that above else it is important to “exercise discretion” when loaning money, even to family and friends. Emergency funds, in particular, should not be touched by anyone but yourself, as every dollar counts in the midst of a cost of living crisis.
Images: Getty