The Credit Show conducted a poll on Britons’ money habits. The research revealed some surprising facts such as that more than 71% of Brits borrow money from friends or family members.
What is not surprising is that this may lead to a clash between borrower and lender, and that nearly sixty per cent of those polled fell into this trap.
Borrowing among friends or family is something that is not properly documented. This is once again highlighted by this research. How many people lend money to a friend who is in a financial quandary? Not even financial professionals are immune to the British debt culture. Nearly eight out of every ten professionals would be forced to ask family or friends for help at some stage. Of this total, 38% would borrow up to £500 and another 25% would borrow well over £1,000.
What this poll shows is that many Britons have to borrow money to fund their lifestyles or pay off debts. Interest rates are currently at a high level and with the credit crunch starting, we might see more of this trend. Twenty-five per cent of people admitted they have been borrowing £1,000 within the last year and nearly 60% of this group had a tiff with a friend or family member over this. This poll does a good job at highlighting the seriousness of this matter.
These same respondents were asked what they would do when they need money again. Would they borrow from friends or family again, or would they consider other options? Over 65% agreed that they might.
Because we trust our family and friends, we tend to be more relaxed about repayments. The poll revealed that over 58% of people had no legal agreements in place concerning repayment. Failing to repay a friend or family member may cost them money in the short-term, but sadly, you could lose their friendship and support, which is worth far more than the sum borrowed.