Personal Loans Leads To Loss Of Friendships

Fri, 17 Aug 2007

People in the UK are falling out with their friends because of unpaid loans, according to a new study.

Research undertaken by Abbey Loans found that 3.5 million people (28 per cent) in the UK have fallen out with a friend over an unpaid debt, with 29 per cent of these scrapping their friendships over less than £100.

Paul Morrish, head of Abbey Loans, commented: "As millions of Brits find that borrowing from or lending money to a friend resulted in the loss of a friendship, we’ve seen that people can fall out over the smallest amounts of money . "

The survey revealed that a combined total of £510 million made up from the 4.4 million Brits (9 per cent) that lend more than £50 to friends every year, while the average loan amount between friends in Britain is reportedly £116.

The most common use for these ‘friendly’ loans is to help friends survive financially until payday (36%), followed by paying off personal debts (26 per cent).

Loans between friends are also used to finance holidays, car purchases and home improvements (all 7 per cent), while 6 per cent fund business ideas with the money .

Mr Morrish, in response to the findings, suggested: "Those that need money for items such as cars, holidays, home improvements, or even cosmetic surgery, would be better off asking a bank to provide the funds, rather than risking a relationship meltdown."

Over 1,000 adults took part in the loan survey between 20-22 July, 2007.
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