Brits are owed approximately £4.7 billion in ‘friendship debt’, according to online payment company PayPal. The main reason for this ‘friendship debt’ is due to lending for larger purchases, to help pay bills or other debts.
Last year friends and family were responsible for lending £16.8 billion, and over a quarter of people are waiting for this debt to be paid back. This means that there is almost £5 billion worth of ‘friendship debt’ which is still outstanding.
Lending money could become a disaster for both your financial and personal life as almost a quarter of those who had lent money have had a argument about this debt at some point.
Mark Hodson, marketing director of Paypal, commented: “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.”