UK "a nation of big lenders"

Brits lend their friends an average of £116 each

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Tuesday, 14, Aug 2007 01:08

Britons lend an estimated £510 million to their friends each year, according to new research.

Some nine per cent lend or borrow over £50 from their pals each year, a survey conducted on behalf of Abbey Loans has found.

That equates to a total of 4.4 million people, according to the official lender, which says the average loan between friends stands at £116.

People are most likely to turn to their friends for extra cash in order to "plug the gap" in their finances until pay day, the ICM poll of over 1,000 adults revealed. Over a third of Brits (36 per cent) said they had borrowed from pals to keep them going until their next wage cheque.

A further 26 per cent of respondents said they had asked friends for a loan to pay off other personal debts, while financing holidays, buying a car and funding home improvements were all cited by seven per cent as a reason for borrowing cash from pals.

Six per cent said they had expected friends to support their entrepreneurial streak by requesting that they loan them cash to fund a business idea, while one per cent had asked for cash in order to buy a gift for their partner.

A further one per cent had asked a friend for money to cover a medical expense.

But while Britain has been found to be a nation that is generous with cash when it comes to lending friends money, the research finds that friendships can be damaged if such loans are not paid back.

According to Abbey Loans 28 per cent of Britons, amounting to an estimated 3.5 million people, have fallen out with a friend over an unpaid debt.

Commenting on the results of the research, head of Abbey Loans Paul Morrish said: "Those that need money for items such as cars, holidays, home improvements or even cosmetic surgery would be better off asking a bank to provide the funds, rather than risking a relationship meltdown."