Summary
More people are borrowing money from family and friends than using Buy Now Pay Later loans, according to a new survey. The study showed that some people turn to loved ones for financial help after being declined by banks or other traditional lenders. Borrowing from family or friends can sometimes strain relationships when money isn't repaid as expected.
Key Facts
- The survey involved more than 4,000 adults and was done by Fair4All Finance.
- 26% of people borrowed from family, 25% used Buy Now Pay Later loans, and 15% borrowed from friends.
- Borrowing amounts from family or friends were often under £250.
- 9% of borrowers said borrowing from family weakened their relationship, and this number was 17% when borrowing from friends.
- Some borrowers from friends (16%) and family (8%) were charged interest.
- A quarter of households surveyed couldn't handle a £500 emergency expense without borrowing.
- Fair4All Finance, started by the government, aims to widen access to financial services for more people.
- Many people rely on family and friends for money after being turned down by banks or due to high-interest loans.
