Britons are currently owed £4.71 billion in unpaid debts caused by lending money to friends and family, new research has found.
Figures from PayPal have revealed half of the 48 million adults living in Britain have loaned money to friends or family over the last 12 months in order to give them debt help, with 24 per cent yet to be paid back.
And the data also suggests lending to family and friends is causing relationship issues, as 24 per cent of those surveyed have admitted getting into an argument about lending or borrowing money.
Marketing director for PayPal UK Mark Hodson noted that “bashful” Brits find it difficult to ask for their money back.
“If you’re lending money to friends or family, it’s worth agreeing up front when you’d like to get the cash back. This can save a lot of hassle and embarrassment further down the line,” he explained.
Recent research from Engage Mutual found that an increasing number of 18 to 24 year-olds are lending money to their parents in order to help them through the credit crunch.
By Tom Musk