Business Personal Finance

Wednesday 25 April 2018

Many lend cash to family - but feel too embarrassed to get it back

A new survey shows that people are generous to those closest to them. Stock photo: GETTY
A new survey shows that people are generous to those closest to them. Stock photo: GETTY
Charlie Weston

Charlie Weston

Large numbers of people get left out of pocket by family and friends after lending them money.

A new survey shows that people are generous to those closest to them.

We are prepared to lend money to family and friends to get them out of a tight corner, pay for concert tickets or help them pay a utility bill.

But more than half of us are too embarrassed to ask for the money back.

This means that the average person ends up owed more than €200 by those close to them, says a survey carried out by Amárach for a new app called Circle, that allows users to send and receive money instantly in Ireland.

In the last six months alone we have lost an average of €108 to friends, family and colleagues in bad debts.

This was for purchases such as entertainment tickets, rounds of drinks, taxi fares, household bill shares, restaurant bills and small cash loans.

The survey also showed that on average people need to be owed almost €50 before they ask for it back.

Only a quarter of those who responded to the survey will ask for any amount of money back.

However, the sage advice of William Shakespeare to "neither a borrower nor a lender be" is taken on board by many.

Half of those surveyed said they never borrow money. And four out of 10 of those surveyed claim they never lend money to friends or family.

People in this country tend to lend more than they borrow, the survey shows.

Some 15pc of respondents admitted to borrowing from friends and family on a monthly basis, with €13 the average amount of money being borrowed.

However, one-in-five of the respondents claims they lend on average €19 on a monthly basis.

When it comes to how Irish people feel about requesting loans to be repaid, more than half feel both uncomfortable and awkward asking for less than €20 back.

Irish Independent

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