Unpaid debts affecting friendships

New research has revealed that many people in the UK lend or borrow sums of money to their friends each year, leading to many falling out over the issue of unpaid debts.

According to Abbey Loans, 4.4 million Britons choose to lend or borrow more than £50 from their friends each year, with the average “friend-friend” loan totalling £116.

The company noted that such loans are often taken out to finance holidays, buying a new car and home improvements, but as many as 3.5 million people have fallen out with their friends over unpaid debts.

Paul Morrish, head of Abbey Loans, advised: “Those that need money for items such as cars, holidays, home improvements or even cosmetic surgery would be better off asking a bank to provide the funds, rather than risking a relationship meltdown.”

At the start of the year, Citizens Advice warned that its offices had dealt with 15 per cent more debt problems in January 2007 than in the corresponding month last year.

The organisation stated that it had seen an increase in the number of problems relating to fuel and housing costs.

© Adfero Ltd

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