23 May 2006
The amount Brits borrow from friends and family could amount to as much as £65 billion, according to new research.
Over a third of the population owe money to these groups, with the average debt amounting to £3,704, according to cahoot.
The company also found that this money came with difficulties. Almost one in five of those indebted to friends or family members said they felt guilty for taking the loan and 13% said they felt obliged to lend money back at a later date.
Most worryingly, 10% said they had to pay back the loan suddenly, as their acquaintance needed the money back.
John Goddard, managing director of cahoot said: "Borrowing money from friends or family is fairly commonplace where relatively small amounts of money change hands. Often that debt is waived, especially for loans from parents to their children, and we accept that this is part of life.
"However, problems can start when people start to borrow large amounts of money in addition to personal loans, overdrafts and credit cards because this can put a huge strain on monthly budgets and on personal relationships."
Compare personal loans and find the best personal loan for you with the uSwitch.com loans comparison service
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.