Borrowing money from anyone should always be thought through, but there are some occasions when borrowing from friends can be fine:
Even the best laid plans can go to pot; you forget one of your bills needs paying, you have to get a train home for a family emergency, or your car breaks down and now you’re left with higher outgoings than expected and no spare cash to repay your mate.
Crucially, you have to stop avoiding them and talk – sorry! Once you’ve had the chat you may find that your friend isn’t actually desperate for the money and perhaps will allow you to set up a more realistic payment plan. If that isn’t the case and they really need the money back then there’s support out there to help you from feeling overwhelmed. Call the Money for Life helpline on 0808 801 0666 for non-judgemental support about your specific situation.
A friend who doesn’t pay back what they owe is not necessarily a bad friend – perhaps just a skint one.
Again, you need to talk to them. This may sound awkward but you’re entitled to ask for your money back. Their response is likely to be “Oh! I totally forgot!”.
If they’re really not able to pay you back, work together on a longer-term solution that suits both of you. Perhaps even show them this article for some top tips.
Regardless of whether they offer or you ask, both sides need to agree some ground rules for the transaction. Depending on the amount and urgency of pay back, you can be more flexible here but generally speaking the lender should say:
While the borrower (that’s you!) should be honest about:
Communication is one of the best ways to avoid high debts that feel out of control and scary. Once you see an unpaid bill, don’t hide from it. Call the supplier they have to help you or call the debt helpline and sort out problems before they start. See ‘Should I get into debt?’ for more tips.