Consumers warned about family loans
Lending money to friends and family can lead to debt problems, a personal finance expert has warned.
Recent research by YouGov found the value of loans between family and friends is more than £14 billion a year and that almost half the population had lent money in this fashion during the past 12 months.
That lending can take the form of small value on-the-spot loans or bigger amounts to help fund purchases, but either way it is vital to ensure the money is repaid, said Cristina Hoole of online payments company PayPal.
She acknowledged that many people feel awkward discussing money with relatives and friends, but insisted the lenders need to set aside that reticence to make certain they do not lose out.
"Nobody really likes to remind people, but often you need to and you need to make sure that you're not getting yourself into debt by being the one that lends money to everyone else around you," Ms Hoole added.
Paul Moorish, Abbey's head of loans, recently warned that borrowing from friends can put a strain on relationships and advised people who need money to seek it from commercial lenders.
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