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Brits 'turning to family' for unsecured loans

Brits 'turning to family' for unsecured loans

Category: Loans

Updated: 05/12/2008
First Published: 05/12/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A growing number of people are turning to family and friends for financial help rather than taking out unsecured loans, a survey has found.

he study by PayPal revealed that £4.7 billion in loans provided by loved ones are outstanding, with the total amount provided over the last 12 months nearing £17 billion.

With half of people having provided loans this year, marketing director Mark Hodson explained that it is "only natural" to be willing to do so.

But he added: "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."

Nearly a quarter of those surveyed said that borrowing had led to arguments with friends and family.

This week PricewaterhouseCoopers revealed that unsecured loans have risen by six per cent ever since 2000, with debt doubling in that time.

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