Monday, 01 July 2019 12:06

Borrowing from relatives hits new highs

One in four people now regularly borrow money from relatives and friends, with sixty per cent admitting they will never afford to pay them any money back.

According to figures recently seen by us, it not only now appears that people borrowing money from their closest relatives is becoming the norm, but it is also becoming expected that this money will never get repaid. And this is never right.

The study, which featured just over three thousand people, and was conducted by a well-known bank, showed that one in four people borrow money regularly (more than four times a year) and this is simply to cover the cost of bills and rent.

A further one in eight said they had borrowed money from close family such as their parents to purchase non-essential things such as a car, or help pay off a holiday.

The majority of people when quizzed said that they were more likely to borrow off their parents, but a growing number of people said that they had also borrowed from grandparents and more distant relatives to make ends meet.

The findings show that people are increasingly getting used to being bailed out by other people, and aren’t getting a grip on their own finances like they need to. People also forget the kind of strain that borrowing from family members puts on the entire family. Only a few weeks ago we documented the rising number of people who claimed that since they borrowed money from their family, there had been a deterioration in the relationship between the involved family members. Rather than risk an entire family dynamic breaking down, people need to address the urgency of getting on top of finances. People should also expect to pay money back that they borrow.