If a pal turned to you for financial help, would you lend a hand? If you have the cash it’s hard to say no, but for the sake of your future friendship that may not be such a good idea.
Money can be the root of all sorts of relationship evils. It’s the cause of many families or friends fracturing and so any planned financial arrangements need to be treated with extreme caution.
Research published today by StepChange debt charity shows one in three people who owe money to loved ones reporting negative effects caused by their financial problems. One in 20 says borrowing from a friend actually led to a relationship break-up.
It’s a growing problem, according to the charity. The number of people seeking debt advice who owe money to friends and family is rising rapidly and the average amount borrowed is now more than £4,000.
| Total debt to friends and family | Average Debt | % of clients | Amount of people | |
| First half of 2014 | £115,049,807 | £3,176 | 20% | 36,259 |
| First half of 2015 | £155,934,645 | £3,570 | 26% | 43,545 |
| First half of 2016 | £198,450,523 | £4,046 | 28% | 49,048 |
Yet it still remains the first port of call for many.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in