Steem4nigeria Accelerator Contest Week 54:What is the best way to retrieve debt?

Hello, friends welcome to my post in which I have discussed the best way to retrieve debt as part of my participation in this 👉contest organized by @steem4nigeria

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What is debt? and how do you understand it?

freepik

If I should borrow money from you and don't pay at the appropriate time of our agreement it means I have automatically become a debtor to you.

Now in a layman's understanding; Debt means money that one party borrows from another with an agreement that the money will be repaid, with interest, over a specified period. It is a financial obligation for the debtor (borrower) to receive funds or goods and agree to pay back the giver later, with an interest that can be paid in regular installments.

In the financial sectors debt is classified into four different types which are:

• Personal debt
• Corporate debt
• Government debt etc
• Unsecured debt

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Have you been indebted before? How did you pay back?

YES, I have been indebted before, and it was when I was in school. it wasn't easy for me to pay back as the person whom I borrowed money from began giving me a sleepless night. The person couldn't even allow me to drink water and keep the cup, and when it got to the point that I was almost embarrassed I had to use my school fees money and paid the person back.

Then while in school, I was expecting money from my parents at the end of the month immediately the money that I was expecting entered into my account, and I quickly withdrew the exact amount that I borrowed from the person and paid him. From that day, and based on how I was been embarrassed I stopped borrowing money from people.

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Have you ever regretted helping someone due to the repayment approach of previous helpers? Share your experience.

freepik

Yes, I have. To lend money to someone is easy and sweet, but for the person to pay you back based on the date you both have agreed is usually a problem. There is this good friend of mine, who asked me for financial help some years ago and I ended up regretting helping him, due to the repayment approach which to date hasn't paid the money. Well, I have even forgotten about that.

This was how it happened, my friend whom I am talking about ran to me that I should give him ₦50,000 with a promise to repay me in one week, I told him I didn't have up to ₦50k but I could dash him ₦20k from my heart, but he kept disturbing me, which I then felt pity on him, and borrowed ₦30k from someone and added it to the ₦20k I have and gave to him. I told him to repay the ₦30 out of the ₦50k so I could give it back to the person I collected it from, but as of then if I should call him, he will start acting somehow that ooh yes is because of common (ordinary) ₦30k that I can't allow him to breathe peacefully and so on. His actions and mood made me angry and I regretted helping him, to date I find it difficult to borrow (lend) someone money.

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What do you think is the best way to retrieve debt?

Without saying much, the best way to retrieve debt is through collateral and a well-stated agreement on how the money will be repaid to you. An agreement that involves the presence and signature of another party (witness) needs to be present to acknowledge both parties.

Collateral is simply an asset that a borrower offers to a lender as a security for a loan. This means if the borrower fails to repay to repay your loan as agreed, you as the lender, have the right to seize whatever asset that is used for collateral and sell it to retrieve the debt. (Owed amount).

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Do you think problematic debt should be forfeited for the sake of peace?

Firstly when looking at problematic debt there are two things we should consider which are the amount that is involved and our relationship with the borrower.

If you think you have more than the borrower, then for the sake of peace forfeit the loan, but if you think the borrower has more than you but doesn't want to repay you, negotiate with him so he can pay you some percentage of the amount you borrowed him or her and then forfeited the others for the sake of peace. However, in my opinion, for the sake of peace, I think problematic debt should be forfeited

I am inviting: @dove11, @simonnwigwe, and @dave-hanny