Money troubles can quickly turn a friendship sour - especially if you’ve lent someone cash and they now won’t pay it back.
We speak to the experts as part of our Money Talk series to get their opinion on what you can do if you’re in this situation.
In an ideal world, you should only ever lend out what you can afford.
If you’re in financial difficulties yourself, try not to lend money that you need so you don’t risk putting yourself in debt.
But if you are in a financial position where you can afford to help a friend, there are some steps you can take to make sure your cash is returned.
'R emain empathetic and patient'
Michael Foote, personal finance expert and editor-in-chief of Quotegoat.com, says you need to look at both your friend's financial situation as well as your own before demanding the money back.
This is because, for the sake of your friendship, it is important to remain empathetic and patient as you don't want to cause unnecessary stress, he said.
If they're struggling, try suggesting a payment plan so you both know where you stand in terms of repayments.
“Asking a friend to pay back the money you've lent to them can be awkward,“ said Mr Foote.
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“Try dropping hints about needing the money and be upfront about your own financial situation.
“If you're concerned, a conversation could turn confrontational ask for the money back in an email or text.
“Have an honest conversation about how much they can afford and the frequency and put it in writing.
“If your friend is struggling financially, don't set a tight deadline; otherwise, this could panic them, and you could end up with nothing.“
If you've yet to lend any money, it could be an idea to set up some sort of payment plan ahead of handing over the cash.
Again, this way you'll know when to expect your cash back and the person borrowing can manage their finances in accordance to how much they need to pay you.
In the absolute worst case scenario, you could consider using court action to get your money back - but you can almost definitely consider any friendship gone at this point.
"As a last resort, you can take your friend to a small claims court for amounts up to £10,000," explained Mr Foote.
"A legal contract can be verbal if you're able to prove it.
"Texts, emails, and social media messages discussing the loan would be enough proof you lent them money, along with a bank statement of the initial transaction."
Keep in mind that if you lose the court case, you could end up paying legal fees for the other side.
