One in four adults will be relying on family and friends to lend them cash, as they feel the January squeeze on finances, new research from Charter Savings Bank has revealed.
The lender found that the average amount borrowed adding up to £1,093 in the past year, with just 54 per cent of them claiming to always pay the money back.
A quarter of those that have borrowed money stated that they to pay it back “most of the time”, while 10 per cent said they “occasionally” pay it back, but 4 per cent admitted to never paying it back.
Furthermore, the research concluded that women are better than men at paying cash back, with 58 per cent of women always repaying family handouts, compared with 49 per cent of men.
According to the bank, partners and spouses are the most likely to be asked for a loan, with 22 per cent of the respondents saying they ask to borrow money from their significant other at least once a month. Around 65 per cent of those who borrow from their partner ask them for cash at least a couple of times a year.
Over a third (36 per cent) of those who ask for money from friends and family borrow from their parents at least twice a year, with 18 to 34 year-olds being the most likely to ask for cash. Of those, 11 per cent admitted to asking for money at least once a month.
The study found regional differences in the amount of savings borrowed from our nearest and dearest. Those in the South East are the most likely to borrow money – averaging £1,873 borrowed each year, with those in the East of England least likely to – averaging just £445 borrowed each year.
Commenting on the data, Charter Savings Bank executive director Paul Whitlock said: “The rising cost of living and squeezed family incomes, particularly at this time of year, can mean that many are increasingly leaning on friends and family to come to their financial rescue.
“In many cases our loved ones are happy to help-out financially, but that can come at a cost, particularly if the recipient isn’t able to pay it back.
“There are many different ways to save; even setting aside what may seem like an insignificant amount each month will see your savings pot grow. Starting a regular savings habit at the beginning of the year will set you in good stead to reach your savings goals for 2019 and leave you less reliant on raiding the savings of others.”
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