When it comes to lending money to family and friends, it seems that the UK is a nation of open-handed generosity. According to research by Topcashback.co.uk, 83% of Brits are more than happy to dip into their wallets and give money to a friend or family member, but when it comes to asking for that money back, it appears that few of us are brave enough to ask.
Indeed, 59% of respondents admitted that they would simply feel too bad to ask someone to repay them money. Around half said that they wouldn't dream of asking, or even expect, a paltry sum of £5 to be repaid, while another 15% stated that they wouldn't ask for a loan of £20 to be returned. A further 20% stated that they would feel far too uncomfortable to ask a work colleague to pay up for any sum.
As a result, few respondents in the research felt confident about ever seeing their money back in their wallets. Over a third of those questioned said that they only felt somewhat confident that they would have their loan repaid, while another 6% admitted that they weren't sure they would ever see the money again.
Loans to parents saw the highest level of confidence, with 49% of respondents saying that they trusted their mum or dad to repay a loan, while loans to partners ranked second on the list with 14% of those questioned stating that they were confident that their other half would pay them back. Bottom of the list were loans to grandparents, with only 1% of respondents saying that money loaned to them would be repaid.
While the vast majority of us seem to be very willing to hand over cash to a family member or friend, failure to have this money returned can apparently cause bad feeling. In fact, 16% of those questioned admitted falling out with someone over money that hadn't been paid back.
Other Brits take measures to ensure that they don't end up owing money or covering someone else's expenses in order to prevent this happening. In the research, a quarter of respondents said that they would happily itemise a bill when out with friends and family to ensure that they don't pay too little or too much. It may seem a little extreme, but if you feel too bad to ask for money back, it may be a useful solution.
Do you borrow money from family?
Is lending money putting your finances at risk?
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.