Most people give private loans to their relatives and friends to help them in their money problems, but when they are going for debt collection, this part will usually become difficult or stressful. The problem appears when you want to collect your money without losing your relationship with any friend or family member. In this condition, you should contact a debt collection company which can fulfil your debt recovery needs with their vast experienced debt collectors. There are some good techniques used for debt recovery through, you can collect your private debt faster.
You should discuss this issue of debt recovery with the person who got loan from you. If he forgot for debt repayment, you should remind him about the payment which he owes, date of payment and agreement about that you will repay the payment in this duration. You should talk with him politely; maybe he can pay you quickly.
Offer him a solution or the technique for repayment whether he is actually unable to repay you, but honestly want to settle your debt. For example, he can give you a product which have the same price as the payment which he owes or do the work for you like some jobs or some tasks which cannot do.
You should write a letter to the debtor, if he is not paying you according to the agreement or having any overdue payments and did not say why he is not paying the debt. You should include in the letter amount of payment, the date on which debtor took a loan and the date of agreement on which he agreed to repay the whole amount. Try to keep letter formal and avoid including personal communication or chat. Create a copy of the letter for your record and send a certified letter to the debtor.
You can also consult with the attorney and a debt recovery agency for this issue. An attorney can write a legal letter on his letterhead on your behalf. You should create a copy of that letter and keep it for your record. This letter contains the amount of the loan and the due date on which you agree to the repayment. It may also include about taking legal action if the debtor did not respond after getting this letter.
If you did not get respond from the debtor then you can also file a case in small claims court. You can file a case in small claims court, if you have your amount of loan according to the court terms and conditions. Mostly small claims court, except the cases in which the amount of loan up to five thousand dollars. You should provide the evidence to support your case on the hearing; evidence can be a letter which you wrote him and the letter which attorney wrote to him. When you won the case, then the debtor will have to pay it otherwise you can use your legal right and can sue him.