There are two types of debtors. One who pays and one who disappears. It would be troublesome to chase after those who keep on hiding especially if they owe you a huge sum. What’s worse is that others get angry if you push them for payment.

When a responsible client goes to the bank and ask for a ten million peso worth of loan, the manager eagerly treats him as a VIP and gives the money as quickly as the formalities are finished. This is because he has established a record with due diligence in his payments.

If another client whom the bank never heard of goes to the same manager asking the same amount of money, he will most likely get only a fraction of that amount. He must first show sufficient records of his credibility in paying loans before he can get any amount that he wants.

Lastly, when a man with poor payment records steps inside the bank and ask for the same amount or even less, the manager may politely decline his demands no matter how much he pleads. The bank does not want to take a risk on that kind of person.

Before you give them your money for a loan, be like the bank and determine their track records. Ask them about this then go to their friends and inquire if they are good debtors. Like what I said before, asking is like an X-ray. The more information you get, the better the image you form of their financial life.

I also find it useful to dig deeper into their problem on why they reached the point of going into that situation. Maybe they experienced a calamity or their house got burned. Ask them a lot of questions to find the root cause.

While doing that, check their social media profiles if it matches their answers. An account full of outings, parties and good times may not be a good sign.

Sometimes, its a habit. They expect their friends will lend them money so they go all out on spending. Again, it will be better if you help him fix the root cause than providing a band aid solution to a very deep wound.

To lend kr not to lend?

To avoid being too hard and biased on whether to lend him or not, imagine yourself in his situation. Put yourself in his shoes. Responsible debtors often muster huge amounts of courage before they approach you for help. Since they don’t usually borrow money from others, they could be a bit timid and not forceful in asking. You can feel their sincerity after a healthy chat or conversation with them. Just be sure they have the capacity to pay.

Saying YES to them is easy. But if you want to politely say NO, refer to my previous article on The Debt Particle Part 1. You can see it here.

At some points in my life, I had been the bank and the client. People would come to me asking for money promising payments on specific dates. Some paid. Others disappeared. I thank both for I gained deeper friendships and very important lessons.

After exhausting my funds on my sixth or more months in vacation, I mustered a great deal of courage and became the client too. I thank my friends who helped me during those lean times. I vow to repay the favor.

Debt can either make or break your friendships. Part Three of Debt Particle will be posted soon.

What’s your debt story?

May the winds be on your favor.


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