Tuesday 23rd of November 2010
People who are turning to family and friends for financial help may start asking individual voluntary arrangement questions in order to wipe off their debts and find the money to pay back those who are close to them
Research carried out by More Than revealed that the total amount loaned out by friends or family and is yet to be repaid stands at £44.6 billion.
On average, an individual will lend £2,250 to those close to them over their lifetime. However, the cost of borrowing may carry implications that are not purely financial, as one-in-three people say arguments have been caused that may never be repaired as a result.
According to the investigation, two-fifths of Brits admit they will not be in a position to pay back money they have borrowed, while 24 per cent of individuals said they had no intention of doing so.
Head of legal services at the insurance provider Matt Pernet noted: "People will often turn to those closest for borrowing, but as our research shows, it can turn into a great source of tension for families and friendships."
Last week, a survey published by uSwitch.com found that 67 per cent of people are now more likely to tell their friends about how little they have, as opposed to confessing details of a large salary.
By Chris King
