When folks are in a bind financially it isn’t uncommon for them to look for help from family and friends, but there are lots of reasons to reconsider taking a loan from someone close to you.
A new survey finds:
- In the last five years, over 60% of Americans have borrowed money from or lent money to family and friends.
- 44% have borrowed money from a family member or friends, including 43% who borrowed from parents, 19% who borrowed from siblings and 19% who borrowed from friends.
- As for lending, 51% have loaned money, with 27% lending money to siblings, 26% lending it to friends and 17% lending to parents.
But there are definitely consequences to lending or borrowing money from those close to you.
- 24% of lenders say they’ve regretted the decision to lend money to their family or friends.
- More than a third of lenders have not been repaid, with 20% of borrowers saying they haven’t paid back their family or friend.
- A third of both borrowers and lenders say it resulted in negative consequences, including:
- Hurt Feelings (14%)
- Resentment (10%)
- Decreased Contact (10%)
- Verbal Arguments (8%)
- Uncomfortable Family Gatherings (6%)
- Irreparable Harm to Relationship (4%)