A well-intentioned loan between friends can lead to a fall-out in the long run, a debt advisory service has warned.

According to Stephen Rose of the Debt Advice Bureau, it is entirely possible that the lender may never see the money back.

Loans between friends and family that are never paid back, or are paid back late, can lead to all manner of disagreements, he explains.

And if the loan has come from the lender's savings, it can sometimes jeopardise their financial situation as well, he cautioned.

"There are cases where the person who borrowed from a family member wants to pay them back over and above [repaying] the proper creditors… That can result in bankruptcy restriction orders," Mr Rose revealed.

Recently, Abbey conducted a survey which found that more then three million people had fallen out with friends and family over an unrepaid loan.

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