Credello: Here's How You Can Pay Back the Money Borrowed From Your Friend

Remember that Uber fare you forgot to split from the ride home last Saturday night? Or the sushi dinner with a friend last month you've been meaning to repay but haven't? You're in luck. October 17 was National Pay Back a Friend Day. So grab your piggy bank and start looking between the couch cushions. Here's how to pay back what you owe.

What is National Pay Back a Friend Day?

In 2017, Bank of America released its "Friends Again Report," which looked at the impact money has on relationships. And while anyone who has been in debt can attest to the stress of owing money to a lender or creditor, it turns out debt between friends can also cause a significant rift. Among the staggering findings from the study are:

  • 53% of respondents have seen friendships end over money
  • 48% of respondents ranked asking a friend to settle up as an extremely uncomfortable scenario
  • 38% of respondents think paying back a debt may help salvage a relationship

In an effort to mend relationships and alleviate money awkwardness among friends, October 17 is now celebrated as National Pay Back a Friend Day. That means it's time to stop making excuses and pony up the cash.

How to Pay Back What You Owe

If you're on the receiving end of a friend's debt, you'd probably accept payment in pennies as long as you get it. But for those of you looking to settle the score, here are two ways to pay back what you owe friends without sending them running for the nearest Coinstar machine.

  • Mobile payment apps: Venmo, Zelle, and Paypal are some of the most popular ways to send money between friends, especially among millennials and Gen Z. In fact, in the Bank of America survey, 41% of millennial respondents indicated sending money via mobile would improve their relationship with friends. Have phone, will pay.
  • Offer an alternate payment: If you can't scrape together the money you owe a friend, think outside the box when it comes to repayment. If your friend has kids or pets, offer to babysit or dogsit free of charge. Maybe you could help with weeding the garden or painting a room in their house. But if you choose this route, be sure your friend understands the service is acting as payment, so they aren't still expecting to see money come in.

The Bottom Line

National Pay Back a Friend Day is a cheeky holiday to encourage people to pay back what they owe and save relationships in the process. But the underlying lesson, showing appreciation for friends, is one to partake in daily. So when you pay back your friends around this time of year, be sure to thank them for shelling out cash in the first place. Then, commit to getting your financial house in order so you'll be ready to foot the bill next time.

Source: Credello

About Credello

Credello is a mobile-first platform that simplifies financial decisions by providing users with personalized, on-demand recommendations—so they can choose the best solution with confidence.

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