September 4, 2004

Dear Piper,

My best friend borrowed money from me three months ago and hasn't paid it back yet. What should I do?

--Confu$ed

Dear Confu$ed,

Money can ruin a friendship faster than you can say cha-ching. But, it doesn't have to...there are a few facts missing from your letter that would be good to know, mainly, the amount in question and the terms of borrowing (if there were any.) In the future, if you lend a friend some cash it's best to consider it gone forever. Why do I say this? Because these tenuous types of debts tend to never be reimbursed. So, if you're cool with never seeing your dinero again, go ahead and lend away.

Let's say, though, that you have a responsible friend who is good for their word. Well, then get it in writing. Document how much is being lent and when and how it will be paid back. Then each of you should sign it and have a copy. I'm not saying something like this will stand up in court, but, when people sign things it tends to just feel more official, more real. But that's for the future and you have a problem now, Confu$ed. I think the next time you see your friend you should casually bring it up. Make sure no one else is around as you don't want to embarrass your friend. Then just take a deep breath and say something like, "Hey, about that $55 I lent you back in June...I'd really like to get it back. I know you're good for it. Oh, look, there's an ATM now. Shall we withdraw some funds?"

--Piper