Only Half of Family Loans Repaid, Report Says

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Mon, 20 Oct 2008

AA Personal Loans has released a report claiming that generous Britons providing friends and family with loans are losing out on significant sums of money. The report suggests that the average £600 family loan is only repaid in half of cases, with an estimated 21.4 million Brits believed to have been involved in taking out a loan from a friend or family member.

The report also suggested that this type of friendly loan may become more commonplace in the coming months, as credit becomes more difficult to obtain. Roughly one in four respondents revealed that they felt more inclined to ask their family and friends for money that then would have been at this time last year.

Head of AA Personal Loans, Mark Huggins, commented, ‘Brits are clearly extremely generous when it comes to lending money, with large sums of cash being loaned to family members and friends for everything from house deposits to holidays. However, 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’.

The report follows the findings of a report by moneysupermarket.com which suggested that an increasing number of young Brits are asking their parents for help in their attempts to secure a personal loan.

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