Remember your rights

The National Credit Act protects you in the credit market and the legislation applies equally to when you lend money. It’s also important to note that with the right to being repaid, you also have responsibilities. Make things easier on everyone by specifying the terms of the loan in simple words, have the person sign that they understand and that they are willing to pay the loan back on the specified terms.

Debt collectors

The benefit of using this method is you’re likely to get paid as these people are more persistent than you’re likely to be, but you will have to pay for their service which takes a chunk of the money you are owed. On the other hand, you save yourself time and you can put the worry of the debt to the back of your mind as someone else does the job.

Small Claims Court

You don’t need a lawyer to go to the Small Claims Court and you can claim for small amounts up to R15 000. Be aware that if you know that the person who owes you has no property, money or job, then there is little point pursuing a claim as you will not see any of the money even if you are successful.

How to keep a relationship while collecting money

If you want to retain your friendships or relationships with family then going to the Small Claims Court may not be the wisest decision; chances are you won’t have a very positive relationship left with your friend. In terms of preserving a relationship, it is much better to avoid debt collectors and courts and try to collect the money informally. Whenever you get a request from a friend asking for money, consider the consequences and if you cannot afford to lose the money or the friendship, think again before you hand over the cash.

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