17 October 2008
British consumers are turning to their loved ones for financial assistance, according to a new survey by AA Personal Loans. More than a quarter of those questioned said they are more likely to borrow money from their family and friends this year than they were last year. Meanwhile, 60% of Brits have lent money to those near and dear to them and 20 million are doing so currently. The most common reason for borrowing cash from loved ones is to pay household bills and put down a deposit on a property or a car. However, the survey also shows that in many cases, generous family members are not being paid back. Furthermore, 11% feel too uncomfortable to ask for the money they are owed. Mark Huggins, Head of AA Personal Loans, said: "Our research indicates that unless you can afford not to expect the money back immediately, don't feel pressured into shelling out your hard earned cash." He pointed out that there are still some good personal loans on offer with low rates of borrowing for those who need extra cash. Recent research carried out by Sainsbury's Finance revealed that an increasing number of parents are using personal loans to pay school fees.
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