Money: How to avoid falling out with your best friends over cash

YOU can’t put a price on a good friend – but it seems many of us find ourselves falling out over money.

For instance, nearly two thirds (63%) of drivers feel awkward about asking pals for petrol money in return for a lift, according to a new survey by Admiral, which also found that over a quarter (27%) say they’ve fallen out with somebody who does not pay their way.

It’s not just petrol money that can lead to bickering over bills. Research from mobile payments service Paym (paym.co.uk) found that a third of stag and hen party organisers were not paid on time by participants, with the average amount owed at almost £250.

Paym also found smaller everyday expenses, such as bin bags and washing-up liquid in a shared house, can often spark flat-share fall-outs.

Here, Annie Logan from Paym gives her top tips to prevent finance fall-outs.

Be clear

If, for example, you are buying some concert tickets for you and a mate, make it clear when you expect to be paid back – or even better, get them to send you the money before you make the purchase. Potential issue avoided.

Put a reminder in your phone

In some ways, it can be more awkward to be the person forgetting to pay someone back, than to be the person waiting for money. More people send Paym payments on the last Friday of the month than any other day – suggesting payday must be a popular day for reminders.

No cash, no problem

There are all sorts of ways to pay these days as an alternative to cash. For example, Paym lets you pay straight to a bank account using just a mobile number – so no faffing with sort codes and account numbers.

Keep it breezy

If you do have to ask someone for money they owe you, try to keep it as calm and breezy as possible. Perhaps try to mention it in a light-hearted way, like: “So when are you having me round for a takeaway part two? I’ll bring dessert!”

Flatter your friends

Turn the focus on to the fact that by paying you back they are helping you out, which will help keep the spotlight off the awkwardness of the outstanding debt.

Don’t sweat the small stuff

If you end up out of pocket for two or three quid, try to ask yourself if it really is worth bothering mentioning it and creating possible tension, or whether you would be happier just to let it go. After all, what is a few pounds between friends?

Seize the opportunity

Many of us have had a night out where we have ended up paying for a round, and then the bar has shut before someone has the chance to do the same in return. But instead of feeling resentment, be a social butterfly, and see more of your friend with the IOUs, not less.

Listen if there is a problem

There’s a reason why you’re friends, right? Be nice if there is a solvable problem. Maybe they are a bit skint but will be able to sort you out next month, or give you half now and half later.

Once bitten, twice shy

If your friend still owes you money and it’s a problem, perhaps try to avoid putting your hand in your pocket for them again until things have squared up.

Remember what friendship is worth

We can all overreact to situations sometimes, so when it comes to money, it is always good to take a step back and ask: Is this money worth losing a friend over?