Your sibling asked you to cover their rent for a couple of months while they were between jobs. Or maybe you lent a friend a few hundred bucks for a car repair they couldn’t afford.
You’d do anything to help those you love. And you did. But what should you do when they don’t pay you back? Consider these options.
Gently approach the subject
Asking a friend or family member to give back money they owe may feel uncomfortable. But sometimes a simple reminder is all it takes to jump-start debt repayment.
Before reaching out, think back to the discussions you had when you offered the money: did you make it clear that this was a loan, not a gift? Did you confirm payment terms and a deadline? Did you get the details in writing?
Framing the conversation around facts rather than your feelings, or unspoken opinions, can prevent confusion.
No matter the context, bring up the issue calmly (and privately) and avoid making assumptions. Using harsh or accusatory language can not only strain the relationship, but it can also make your loved one less likely to pay up.
“What we have to do is create space for that individual to come out of a shame mindset and perspective, and become less avoidant to engage in a healthy conversation,” says Michael Thomas, an accredited financial counsellor who teaches in the University of Georgia’s financial planning programme.
Acknowledge what’s happening in your loved one’s life and be upfront about your own situation. Then, you can discuss how to move forward.
“I think the best approach is just to come at it with a lot of empathy and understanding that you’re both in it together,” says Thomas Nitzsche, director of media and brand at Money Management International, a non-profit financial counselling and education service.
Make or revise a payment plan
Ideally, before lending them money, you’d have made a loan agreement outlining how much the borrower owes, how they’ll pay, when payment is due and what to do if they can’t pay.
If not, or if the person can’t meet the original terms, hash out a new plan. Consider extending their deadline or allowing them to make smaller payments.
Setting up automated payments through a peer-to-peer platform can make it easier to get repaid over time, Mr Thomas says.
A traditional payment plan isn’t the only option. Perhaps your friend or relative could chip away at the balance by periodically covering one of your bills, Mr Nitzsche says, or paying for a meal.
If your loved one is struggling to come up with cash, perhaps they can repay you with service.
“Suppose the lender needs a family room painted or new faucets installed. A borrower with those skills might be happy to work off the debt,” lawyer Cara O’Neill, a legal editor at Nolo, a self-help legal website, says.
Forgive the debt
Working out an arrangement can be stressful, especially if your loved one doesn’t come through. Waiving the debt could be the best move for your peace of mind and relationship.
However, you might reconsider giving this person, or anyone, money again unless you’re prepared to lose the amount. Think carefully about how forgiveness would affect you.
Mr Thomas suggests asking yourself: “If I do not get this money back, it’s not just how will I feel, but how will this affect any of my financial goals or anything that I have planned to do with those resources?”
Take legal action as a last resort
Mr Thomas doesn’t advocate suing friends or family in most cases. But that path might be worth exploring “if there are large sums of money on the table and there is an individual who you have reason to believe has the capacity to pay”, he says.
It’s important to have evidence on your side, too. You’ll have an easier time proving the case if you have a written contract, Mr O’Neill says.
If you take this route, prepare to burn bridges. Will it be worth it if you receive your money back? Will it be worth it if you don’t?
Western Clubs Champions League:
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Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
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Price: Dh300,000 (estimate)
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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Specs
Engine: 3.0L twin-turbo V6
Gearbox: 10-speed automatic
Power: 405hp at 5,500rpm
Torque: 562Nm at 3,000rpm
Fuel economy, combined: 11.2L/100km
Price: From Dh292,845 (Reserve); from Dh320,145 (Presidential)
On sale: Now