Debt to family and friends can cause relationship problems but a survey has shown that more people are being forced to borrow money this way to survive.
As the cost of living increases and employment slowly begins to recover, people are turning to friends and family to help make ends meet.
The Aviva report has found that the average household in debt owes £2,000 to friends and family. This is the same amount as being borrowed on credit cards.
Why Do People Borrow From Friends and Family?
We’re experiencing a change in social beliefs surrounding debt. In the past, people often wouldn’t share their debt and money problems with anybody, including friends and family. However, as times get tougher and the availability of credit has been restricted, it’s a person’s nearest and dearest that are being asked to help.
The Aviva study compared 18,000 households and also found that the average family has £13,000 of unsecured debt – a rise from £9,000 just one year ago.
What To Do In Debt?
It’s vital for families in debt and struggling to repay their contractual payments to get advice. At Debt Support Trust our charity advisors have helped many people who owe money to friends and family and can provide tailored debt advice.
Our charity helps people deal with their debt problems. We do this by listening to your situation and by finding positive solutions to become debt free. There are always routes out of debt and we’ll help find the right one for you.
If you want our help, you cantelephone 0800 085 0226 or complete an online debt test for debt advice and recommended solutions which could help you decide which option is right for you.