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.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form