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'Sticking With Professionals' Brits Looking To Borrow Advised

Aug 18, 2007
Britons are borrowing millions of pounds from their loved ones, it has been revealed.

Research conducted by Abbey Loans indicated that nine per cent of adults (some 4.4 million) either lend or borrow over 50 pounds from their pals. With the average friend-to-friend loan accounting for 116 pounds, an estimated total of 510 million pounds is handed over every year. However, the financial services firm reported that running up debts with friends is causing millions of consumers to fall out with one another. Just over a quarter of those surveyed (3.5 million) have had an argument with a friend due to unpaid money, with 29 per cent of these disagreements being about a sum which is less than 100 pounds.

Paul Morrish, head of Abbey Loans, said: "As millions of Brits find that borrowing from or lending money to a friend resulted in the loss of a friendship we've seen that people can fall out over the smallest amounts of money." Consequently, he suggested that those who need to borrow money to fund expenses such as "cars, holidays, home improvements or even cosmetic surgery" should look to go to a professional credit provider instead of their loved ones so as to avoid "risking a relationship meltdown".

Findings from the financial services firm also showed that the largest proportion of consumers (36 per cent) looked to use money from a friend as a means of debt consolidation, with paying off personal debts cited by 26 per cent of respondents as the main reason for borrowing money. Meanwhile, financing holidays, car purchasing and funding home improvement projects were each said to account for seven per cent of borrowers' spending intentions. The study also showed that one per cent took their acquaintances' money to cover the cost of medical treatment, with the same percentage using the cash that they received to buy gifts for their partners.

In research carried out earlier this year, MoneyExpert revealed millions of consumers could be running their finances further into the red by going on an annual summer break abroad. Findings from the company showed that 1.4 million Britons are still making payments to fund the holiday that they went on last summer, with 926,000 claiming that it took them at least 12 months to complete paying back the debts they incurred via borrowing for their previous vacation.

Chief executive for the firm Sean Gardner claimed that despite five base rate rises by the Bank of England's monetary policy committee over the last 12 months, concerns that another increase may take place by the end of the year could see tourists' financial pressures deepen even further. "With borrowing costs rising across the board there is real concern that too many people are trapped in a spiral of debt which ultimately threatens to overwhelm them," he commented. Mr Gardner claimed that those looking to lessen such strains should look to create a spending plan to rein their monthly outgoings, which may involve switching existing debts run up via various avenues of borrowing such as credit cards into one low-rate personal loan.
About the Author
Steve Smith Writes for 1 Stop Finance Shop UK. Our visitors can apply online for all types of loan. From bad credit tenant loans, to secured personal loans. Visit our site today: http://news.1stopfinanceshopuk.biz
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