Brits `issue loans to loved ones`

21 October 2008

A significant number of consumers in the UK are issuing loans to their family members.

This is the finding of research conducted by AA Personal Loans, which found that over 20 million Britons have lent money to loved ones.

People were said to be willing to lend an average of £607.22 a time.

However, as the credit crunch continues to make its impact felt, only half of those who part with their cash were found to get it back.

Reportedly, embarrassment prevents six per cent of people requesting their money, while 11 per cent of people questioned said they felt too uncomfortable or mean to request loan repayments.

"Our research indicates that unless you can afford not to expect the money back immediately, don`t feel pressured into shelling out your hard earned cash," stated Mark Huggins, head of AA Personal Loans.

In related news, writing in the Manchester Evening News recently, David Ottewell suggested that many banks are now restricting their best borrowing rates to people who have "impeccable" credit histories.

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Tags: loans, personal loans, personal, personal loan, family, family loans

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