30 March 2005
Consumers in the UK are being urged to put an end to the growing favourability of lending money between friends and opt instead for secured personal loans.
A new report from Clerical Medical revealed a disconcertingly high level of personal lending taking place between mates.
According to the research, Brits owe £102 million - not to banks - but to their friends, whilst over seven million admit to having borrowed cash from their pals without paying it back.
In total, nearly 75 per cent of Brits admitted to lending some amount of money to their mates from time to time.
But this form of lending can and is turning friendships sour as repayments are either not met or severely delayed.
Clerical Medical drew attention to one by no means isolated instance where a loan of £7,000 between friends typified the tumultuous consequences.
"A month after our agreed payback date, my friend lost his job," explained the involved individual. "I suggested he got a lodger to help out but this fell on deaf ears. In the meantime, I was invited round to his house and had to watch as he bought himself new furniture and carpets while I was still waiting for my money!
"But the whole thing destroyed our friendship - we haven't spoken for six or seven years and I'll never lend large sums of money to anyone ever again."
Secured personal loans can prove to be a far more convenient and effective means to help solve financial situations.
Compare secured and unsecured loans at uSwitch.com. Find the most suitable loan for you.
© 2008 Adfero Ltd
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