A new survey by Lloyds Bank “How Britain Lives” which analysed the borrowing habits of 2018 adults has confirmed that one third of Brits borrow money from people close to them, by that a whopping 53% don’t expect to pay the money back. No bank offers unsecured loans like this! It also found that 22% of people are borrowing money from friends and family just to get by, using the cash to cover day-to-day living costs.
The Bank of Mum and Dad still remains the most likely source for a loan with 25% borrowing an average of £4008; with 5% of us borrowing from siblings, 4% from friends and 3% from Grandparents.
So how does this impact upon our lending attitudes? 46% of borrowers did admit to feelings of guilt as they hoped to be providing for themselves, and 8% did admit that borrowing money has been subject to issues within the family.
However 61% of Brits are more than happy to lend. With those of us that live in the South West of the country the happiest as 67% in this area are happy to lend money to family and friends in time of need.
Londoners though seem to adopt a different approach, and are the least likely in the UK to lend family or friends money at just 50%. They are also more likely to be annoyed about being asked for a loan, with 20% claiming irritation compared to the 8% average across the rest of the UK. The East Midlands are far more relaxed about lending money, with no respondents saying it left them feeling annoyed or uncomfortable.
The study has been launched as part of Lloyds Bank new M-Word campaign, which encourages us all to talk more about money. It found that 44% of us have purposely avoided a conversation about money with 25% of us lying to family and friends about the state of our finances.
Head of customer support at Lloyds Bank, Martin King said: “We feel much more comfortable lending than borrowing in Britain; with half of us feeling guilty when we do have to ask for a bit of extra help. It’s important to keep talking with our family and friends about money concerns, as it can help to have some support and hear another perspective. We’ve recently created the Lloyds Bank M-Word online hub to provide a series of tips to help people feel more confident in opening up about money worries.”