The Bank of Friends and Family

3 Minutes Read

PiggyBank has recently undertaken a survey and found the average Brit is in debt to the tune of £2,813 to their friends and family.

PiggyBank surveyed 2,000 adults in the UK and found that the top reasons we borrow from friends and family is for unexpected repairs such as boiler breakdowns, bills and to help pay for new cars.

We’re most likely to borrow from our parents, followed by another family member, siblings, partner, colleagues and finally our kids. This type of borrowing makes up over one tenth of our average debt – which currently stands at £18,814 (excluding mortgages).

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Paying back to friends and family doesn’t always go smoothly. We found that over a third of those surveyed still owe to their friends and family. This has resulted in one in ten losing a friendship and one in twenty have been estranged from a family member over disputed money.

More than half said they’ve lent cash knowing they were never likely to see it again, with 55% saying they would think twice about doing it again.

The bank of ‘friends and family’ is usually the first port of call for those with unexpected expenses, but loans between family members or friends can often result in their own sets of problems” said Dan Ware, CEO of PiggyBank. “Loan affordability is always something you should consider, which is why at PiggyBank we only lend to people who can afford to repay their loan without putting themselves into financial difficulty“.

 

In The Press

Daily Mirror: The astonishing amount we owe our friends and family after borrowing cash over several years

The Sun: Average Brit is in debt to the tune of £2,813 to friends and family

Unilad: We’re All In Debt To The Bank Of Mum And Dad Apparently

News Anyway: Study finds the average Brit is in debt to the tune of £2,813 – to their friends and family

Entertain the kids: Study finds the average Brit is in debt to the tune of £2,813