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How to negotiate with someone who owes you money

It’s very hard to negotiate with someone who owes you money. A lot of people allow their money to control their emotions, and that is the last thing that you need to show when trying to negotiate for anything. You will want to consider the fact that there are a lot of people who do struggle with money, however, when it comes to lending money you need to think about your safety as well as theirs. Every time that you give someone money you will need to tell them that they need to sign a legally binding IOU, so that you are protected when someone doesn’t want to pay you back. You have the upper card because you have to decide rather to press it or take legal action. Most people who are threatened by legal action will be more likely to be convinced then someone who doesn’t.

How to negotiate with someone who owes you money. Source: ShutterStock

How to negotiate with someone who owes you money. Source: ShutterStock

You will want to make sure that you talk to the person calmly. You need to make sure that you do not allow your emotions to make you say or do anything that you normally wouldn’t do. You don’t want to threaten anyone with any bodily harm or threaten them. You will want to make sure that you also think about the way that you say things and the way that you say them. You need to watch your body language and your vocal tone. You will find that there is a lot of hidden messages in someone’s non verbal communications. You don’t want to do anything that will seem to be threatening. When you use force or bullying to get what you want then you will be unable to have solid ground. They will not be convinced to give you back the money, but to leave you alone all together. The last thing that you want someone who owes you money to do is just let things go.

You need to always keep the roads of communication open. When you say you need to give me the money, and they say they are unable to pay you in full, then you need to keep in mind that there is some where in the middle that you have to meet. Ask them to pay back a little bit or half of the money. You can set up weekly or monthly payments so that you can make up the difference later. If you keep things civilized you are more likely to get what you want. If you keep things under control you are less likely to have to threaten with legal action or take a loss. You can do a lot when it comes to using kindness as a way to convince others.

You will also want to play it cool for a little bit. See what type of person they are and if they are willing to come to you and figure out arrangements. You will want to take this waiting period to do some research. Ask some of your mutual friends to see if there are other people who they owe money to and what they could possibly have as a debt to income ratio. You will then want to use the education to set up a re-payment plan or ask them if they would like to have an extension. If you start off by showing some understanding, you’ll be able to control the situation. It is very important that you learn how to control your current situation.

You will find that there is a lot that you can do to keep the situation in control; however, you have to learn to control yourself as well. You will need to make sure that you control your emotions and think at things in logical way.

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