Britons will ask family or friends for up to £1,500 when they need a loan

Borrowers have been loaned an average of £3,400 from their loved ones over the past five years – but three-quarters avoid the borrower

Britons will ask family or friends for up to £1,500 when they need a loan
Britons will ask family or friends for up to £1,500 when they need a loan

Britons will turn to their family and friends for cash loans for unexpected car repairs, university fees – and even buying a new home.

One study asked 2,000 adults about their financial habits and found they felt comfortable asking a loved one for £1,500 at any one time.

And borrowers have been loaned a total of £3,400 from their nearest and dearest over the past five years – to finance life milestones such as weddings and also to cover loans. daily shopping like buying coffee or lunch.

But even though it has become a part of everyday life, 30% felt it was an awkward experience and nearly half (45%) ended up regretting it.

The study, commissioned by Shawbrook Bank Personal Loans, also found that a third of women (33%) often feel uncomfortable asking for a loan, compared with a quarter (24%) of men.

And more than three-quarters (77%) even choose to avoid the topic altogether, unless it’s an emergency.







Buying a new car is the top reason to get a cash loan from a lender
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Image:

Mike Kemp / In Photo / Getty Images)

Sally Conway, Head of Consumer Communications at Shawbrook Bank“We are a nation of borrowers, and for many, this means borrowing from loved ones to help finance the big moments in our lives,” said. as well as the little things we need.

“But getting a loan is not a decision to be taken lightly and, whether from friends or family, you need to have clear terms agreed to from the start or things can get complicated.

“Talking it over and getting everything in writing – including the amount borrowed, the amount to be paid, and the term – can help avoid any unnecessary awkwardness later on.

“This is essential when applying for a bank loan, and the same principles should apply to any loan.”

The study also found that more than half of adults had previously turned to financial lending rather than seeking help from family and friends.

This is because it’s awkward (45%), doesn’t hurt the relationship (45%), and it’s the “official way” (37%).

The average adult has taken out an unsecured loan of credit estimated at £8,000 over the past five years.

And a typical adult would feel comfortable looking for £11,000 worth of money from their bank in the future.

Covering the cost of a car purchase is the top reason to consider applying for a loan, while more than a third (34%) will finance a home renovation with help from a lender.







Many Britons are in need of help with the rising cost of living
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Image:

Print Pictures Ltd./Corbis/Getty Images)

But the survey, conducted through OnePoll, shows that many people don’t do their homework when it comes to taking out a loan – as only 29% will spend time researching before making a decision.

Just under half (44%) will take the time to understand the APR, while just 41% will budget before committing to a loan.

Sally Conway added: “Our research has found that, alarmingly, even when borrowing from financial institutions, not everyone has a clear understanding of what they are applying for.

“Financial lenders will always check your ability to pay when you borrow money, and will set terms and conditions before lending money. It is really important to look at these things in detail and make sure you understand them.

“At Shawbrook, we want to help our clients better understand the content and costs of borrowing money.

“Knowledge is power, and it’s important for consumers to know what they’re signing up for in the first place – that’s why we offer a range of guides and tools to help people navigate the world. better borrowers.

“We believe in being transparent and fair to everyone by providing guaranteed personalized rates for our personal loans that won’t affect your credit score when you buy a loan. Sign up for a quote.

“It’s really important, no matter what or from whom you’re borrowing money, to follow up and do your research before you sign any deal, so you can make informed decisions. Be clear about what’s right for you.”

TOP REASONS TO GENERATE CASH FROM FAMILY AND FRIENDS:

  1. To cover unexpected expenses, such as home or car repairs
  2. To pay family bills
  3. To pay for smaller items like coffee, lunch, bus tickets, etc.
  4. To pay off an existing debt
  5. Buy house
  6. To buy a new car
  7. To finance home renovations
  8. To cover private medical expenses
  9. To cover the growing cost of living
  10. To fund education, including college education
  11. To start a business
  12. Moving expenses
  13. To pay for a vacation of a lifetime
  14. Get married
  15. Take care of children

TOP REASONS TO DEPOSIT CASH FROM FINANCIAL Lenders:

  1. To get a new car
  2. To finance home renovations
  3. Buy house
  4. To cover unexpected expenses, such as home or car repairs
  5. To pay off existing debt
  6. To start a business
  7. To cover private medical expenses
  8. To pay for a vacation of a lifetime
  9. To fund education (including college education)
  10. To cover moving costs
  11. To cover the growing cost of living
  12. To improve credit rating
  13. To pay family bills
  14. Get married
  15. Take leave in accordance with the law

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https://www.mirror.co.uk/money/brits-borrow-money-family-friends-26418249 Britons will ask family or friends for up to £1,500 when they need a loan

Fry Electronics Team

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