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Business News/ Money / Personal-finance/  The intricate details of borrowing from friends and family
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The intricate details of borrowing from friends and family

We all have borrowed money in times of need. Here's a glimpse into who we borrow from and how much of the borrowed money is returned

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The National Foundation for Credit Counseling’s 2016 Consumer Financial Literacy Survey found that nearly a quarter of all Americans turn to family and friends as the first resource to help with their ongoing debts. Online loan portal iLoan.com went deeper into this with its own survey of 800 people. It found that about 97% of respondents said they’ve borrowed money from friends at least once in their lifetime with the average amount borrowed being $8,546.

Also, 59% of the borrowers were teenagers. Those in their 20s and 30s have a 17% share each in this group.

The lenders are the usual suspects: mothers (65%) and fathers (55%). About 20% have borrowed from friends and only 13% could get a loan from their brothers. Interestingly, 12% were able to get a loan from boyfriends and girlfriends too. Of those borrowing from girlfriends or boyfriends, millennials are 16%.

And when it comes to the amount of the loan, co-workers seem to write the biggest cheques: $6,462 on average. Grandparents come next with $5,984 and dads give out $5121 on average. Friends, however, average only $3,319.

The bad news for lenders is that only half the loans are paid back in full and 14% aren’t paid back at all.

In the survey, the borrowers said that the loans did not hurt their relationships: 83% said that the loans did not affect their relationships and 6% even said the process actually strengthened the relationship.

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Published: 15 Sep 2016, 06:19 PM IST
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