Have you ever found yourself in a situation where you had more money in the hands of your debtors than you had in your bank account?
Maybe yes Maybe no, but you must have at one point in time had someone owing you money, perhaps you have plenty of them at the moment and you just don't know how to get your money out of their hands or it's you who have your creditors running after you.

Whatever category you find yourself, there is a thing or two fro you to learn in this article and the first category we would consider are those who have debtors who are refusing to pay up, truth is i cant give you an at-the-snap pf a finger rule you can use to get your money out of the hands of your debtors, but i can give certain principles you can apply the next time someone comes to you asking that you lend them money.

1. Know the person you want to lend money to, having a good knowledge of the person will make it easy for you to conclude if the person would be able to pay you back or not, knowing the person means, having a knowledge of the persons financial history, this will also you from giving your money out to a serial debtor, even if the person is your friend, sometimes friends and acquaintances can be one of the most terrible set of people to lend money, beacuse when they don't pay, you find it hard to put pressure on them to pay you back. so when you know the person handle his/her own finances well and you still go ahead to lend the person money, then you already know what to expect.

2. Never lend people an amount you know you can't give them, this is very important and it would determine what happens during the period you are waiting to get your money back, for example, someone comes to you asking that you lend him 10,000 and you have that sum and can lend that person the sum without much pressure on your own pocket, but you are not certain he would be able to pay back based on your knowledge of the persons financial history, your best bet is to lend the person half of that amount, having it in mind it might take a while before you get your money back or that you might never even get your money back, but then it's still proper to keep asking for your money, foregoing your hard earned money in the hands of a debtor is not a good financial practice, except you give the person outrightly from the beginning.

Following the two principles above will save you a lot of headache in the future when lending people money and for those who are already your debtors and refusing to pay back, just keep trying, at least you know now that you can't lend them again and if you must you know how to go about it.

Now for those who are debtors, really i don't know what to say to you first, but to ask you got yourself into this messy situation, but then i am not judging you, because even the richest countries in the world and fortune 500 companies take loans, so it's something we can't avoid all the time, so if you borrow money or take loans, the following principle could help you in making the right decisions.

1. Avoid borrowing money or taking loans and save more, yes that's the most effective way to keep yourself from accruing debts, just avoid it altogether, when you save more than you spend, you find it easier not to borrow, also when you live within your means, you will be a lot farther from borrowing than people who spend lavishly, saving in this context does not mean being stingy or just withholding for no reason, but setting aside a part of your income to use for a future venture, and just to have something to fall back on for emergency purpose.

2. Take loans or borrow money to spend on assets and not liabilities, if the bulk of the time you borrow from friends or take work place loans, is to spend on liabilities then you are something wrong, if you exhaust your salary before the next one is paid and not because your salary is paid late, but just because you don't save then something is wrong and you can give excuse that your salary is too small, because if your salary is small it means your spending should be small as well, so you can still have enough to save. For example Taking a loan to buy a car and you service and maintain the car from your salary, at the same time servicing the loan from the same salary is not a wise move, a better move would be to buy a car or a bus, put the car or bus to use in transport business and it would immediately start getting returns for and in that way you won't feel the crunch of the loan you are servicing, but a lot of times young people are eager to show everyone they are living good by flashing their cars and expensive clothings and all that, but people who want to have peace of mind practice the principle of DELAYED GRATIFICATION, and that means taking your time to build your finances, even though you have enough to flash.

3. Try as much as possible to take loans that does not have interest, and the only way you can get such a loan is from your work place because no bank will give you a loan without interest, if such a bank exist though please let us know, so if your company doesn't provide such a loan, then you might as well start searching for a better job, at one point in time we would need a loan support one way or another and if the place one works and spend most of ones time cannot support when one needs support why keep being there, you can read on how to get a better job HERE.

The suggestions in the write up are just my own everyday rules that i use to mange my finance, perhaps you are an expert in this topic, please share your knowledge with us by commenting below and don't forget to share.thank you