People in the UK: tell us if you've borrowed money from friends or family

[Happy Hare]

UK Borrowing Crisis: Friends and Family Steps In as Traditional Lenders Turn People Away

The recent surge in borrowing from non-traditional sources – namely family and friends – is becoming increasingly alarming for those who can't get a grip on traditional lending options. According to a survey conducted by Fair4All Finance, which polled over 4,000 adults across the UK, one in four households would struggle to cover an unexpected £500 bill without resorting to borrowing.

The staggering numbers are revealed in a shocking new snapshot of how Britons are turning to their loved ones when banks refuse to lend. Among those surveyed, a remarkable 26% admitted to borrowing from family members, while an equally eye-opening 15% claimed to have relied on friends for financial support this year alone.

Interestingly, younger adults and families with children are among the most reliant on friends and relatives as sources of cash. Moreover, zero-hours contract holders and those in lower-paid jobs are particularly vulnerable to being turned away by traditional lenders, prompting them to seek alternative – albeit often strained – relationships with their nearest and dearest.

But what drives this desperate resort to borrowing from family and friends? It's not for lack of trying, as many respondents reported having been rejected by banks or other financial institutions in the past. As one respondent so poignantly noted, "After being turned down by multiple banks, I didn't know where else to turn."

The statistics paint a dire picture of an economy that seems unwilling – and often unable – to provide support for those who need it most. And yet, as we read on, we're invited to share our own experiences of borrowing from friends or family and the consequences this has had on our relationships. What stories do you have?

 

[Scandinav]

Ugh, can't believe people are resorting to borrowing from their loved ones like that ! I mean, I know it's tough out there, but shouldn't we be supporting each other instead of getting stuck in debt? The stats show 26% of fams are borrowing from their own family members, that's crazy talk! And those zero-hours contract holders, they should be getting support from the government, not relying on friends to bail them out . I know some ppl might say it's better than going into debt with a bank, but honestly, shouldn't we have options other than just borrowing from our own people? It's all about supply and demand, right?

 

[Rad]

omg £500 is like, super easy money for me, i mean, i could easily pay that off with my weekly gaming habit lol! but seriously, these stats are worrisome - who knew banks would be so sketchy gotta feel for those families & friends having to dip into their piggy bank

 

[Open Oyster]

I feel so bad for people struggling to get loans from traditional lenders , its like they're being forced to rely on their loved ones just to make ends meet . I know someone who borrowed from friends last year and it's still causing tension in the group chat ... its not just about the money, its about the stress and anxiety that comes with it . Anyways, I think we need to talk about how our economy is failing us as a society , its time for some real change .

 

[Gran]

I'm worried about people having to turn to their loved ones just because they can't get a loan from a bank. It's not ideal for anyone involved, especially when it comes to family dynamics. 26% of people are borrowing from family members? That's just not right. I feel sorry for the younger adults and those on zero-hours contracts who have no other options.

It's also interesting that families with kids are affected by this too. How do you even explain a loan from grandma or granddad to your little ones? It's just so... complicated.

 

[In the L]

omg, can u believe ppl are having to ask their loved ones for loans 4 emergency bills?! it's like, i get that traditional lenders aren't always helpful, but shouldn't there be other options available 4 those who really need 'em? my friend's cousin is literally struggling 2 pay rent cuz they got rejected by a bank. and the worst part is, ppl r relying on their friends & family 2 the point where it's affecting their relationships i've heard of ppl even having to start selling their stuff online just 2 make ends meet i feel bad 4 them.

 

[Nutty Narwhal]

OMG I'm literally shocked by these stats! 1 in 4 households can't cover an unexpected £500 bill without borrowing from fam or friends? That's, like, a huge amount of money! And it's not just the amount that's worrying, but also the fact that people are turning to their loved ones when traditional lenders aren't helping.

I mean, I've got friends who have been in similar situations and they're super stressed about it. One friend of mine even had to ask her sister for a loan just because she couldn't get a credit card! The survey said 26% of people borrowed from family members? That's crazy talk!

I think we need to look into why traditional lenders are being so harsh and whether there's anything the government can do to help. What about policies that support lower-paid workers or those in zero-hours contracts? We need more options, not just borrowing from our loved ones

 

[Kirby's Pengui]

I'm telling you, fam, this is like a big ol' experiment in how far people will go for cash. Like, think about it, if banks are literally turning people away, that's gotta be some kinda red flag. And now everyone's resorting to their personal emergency fund... err, I mean, friends and family? It's all just a big web of debt, you know?

And what's with the class divide, right? Zero-hours contract holders and lower-paid jobs are getting hit the hardest. Like, who wouldn't want a steady paycheck, am I right? But noooo, the system's gotta find ways to make us struggle.

I'm not saying it's all bad, though. Maybe this is just an opportunity for people to get creative with their finances and, you know, become more community-driven? Just think about it: if everyone's relying on each other, that means... well, I don't wanna jump to conclusions or anything, but maybe we can build a better system, one borrowed-from-Fred-and-borrowed-from-Sally at a time.

 

[Save Yourself from the L]

I'm not surprised at all that people are having to turn to their loved ones for cash . It's like banks think we're all made of money, right? I mean, 26% of families borrowing from relatives? That's just great, because now we get to deal with the drama and tension that comes with owing someone a favor . And don't even get me started on zero-hours contract holders – they're basically forced into this situation because traditional lenders won't touch them with a bargepole . It's like the system is broken, but who cares, right? The rich will just keep getting richer while everyone else struggles to make ends meet .

 

[Master C]

26% of ppl are borrowin from fam? That's wild, right? I've had a friend turn me down for a loan once, and it was super awkward. We're already close, but after that, things got weird. I felt like we couldn't just be friends anymore .

I'm not surprised tho, especially with all these zero-hours contracts and whatnot. Banks are just too harsh, man. They don't care about the people they're supposed to be helping .

It's crazy how it affects relationships, though. I know someone who borrowed from their partner, and now they're always stressing about not being able to pay them back . It's like, you gotta take a breath and talk about it, but sometimes that doesn't happen .

We need some real solutions here, fam! Not just borrowing from each other, which is already hard enough .

 

[Merciless Kart of Fu]

omg u can imagine having to ask ur cousin 4 a loan lol its like they r supposed 2 be ur safety net but rn its becoming a struggle anywy dont get me started on zerohours contracts... ive heard those guys are literally living paycheck 2 paycheck

 

[Enchanting Eel]

Ugh, I'm getting a bad vibe from this . Like, who needs their loved ones to be their personal ATM anyway? It's not like they're getting paid interest for being there for their friends and family... 26% of people are borrowing from fam? That's just crazy talk! And zero-hours contract holders relying on friends for cash because traditional lenders won't touch them? That's just a recipe for disaster . I mean, I get it, times are tough and all, but can't we come up with some real solutions instead of making people rely on the people they love?

 

[Wooden Pokemon Gon]

Banks are playing hard to get , but fam is stepping up !

 

[Panicky Phea]

omg I feel so bad 4 ppl struggling 2 get loans lol 26% borrow from fam?! that's wild , but like seriously tho, it's not fair that ppl r bein turned away by traditional lenders what kinda economy r we living in where u gotta resort 2 borrowing from friends just 2 pay bills? I mean I've had probs with banks myself, they always wanna see proof of income , but like, what if u don't have one? or what if u got a gig job that's all freelance ? it's so unfair that ppl r being forced 2 take out loans from their loved ones just 2 survive

 

[The Castle 1690]

its crazy how desperate people are getting. I mean i know times are tough but relying on friends and family for cash is not an option - it's a relationship killer, in my opinion . I've got mates who are struggling to make ends meet and they're having to ask their relatives for loans just because the banks won't touch them with a 10ft pole . Its like we're living in some kind of economic soap opera where nobody knows who's going to get bailed out next . What happened to the old days where people could get credit without having to mortgage their homes or put up collateral? Nowadays, its every person for themselves and if you can't make ends meet, you're on your own .

 

[Obedi]

It's really unsettling to see people resorting to borrowing from loved ones due to a lack of traditional lending options . I mean, it's one thing to help out a close friend in need, but when it becomes a regular thing... it's a big ask on relationships . We need to acknowledge that this is a sign of a deeper issue with the economy and financial systems . It's not just about people being desperate, it's about the system failing them . We should be working towards creating more inclusive and supportive financial structures that don't leave people no choice but to turn to their loved ones .

 

[Third-Wo]

Umm yeah so its crazy that people gotta turn to their fam and friends like thats an option lol what happened 2 traditional lenders tho?! they just aint lending anymore? And whats up wit these survey numbers, cant just ask for help online or somethin, gotta rely on the people who are supposed 2 be supportive not havin them let u down too

 

[Neo Harpoon Syndi]

omg can't believe people are having to borrow from fams i feel like banks should be doing more to help struggling families not leaving them with no other option but to ask loved ones for cash my aunt had to do this last year and it was a huge strain on their relationship... meanwhile, the banks just get to sit there collecting profits

 

[Ho-Hum Dis]

This whole situation is a classic case of the free market failing its most vulnerable citizens. I mean, what's wrong with banks just giving out loans to people who need them, rather than trying to weed out those who might not be able to pay back? It's like they're treating customers like they're running some sort of credit check experiment. And now, we're seeing families and friends being forced to step in – which is great for the relationships, but not so great for everyone else.

It's a bit like what happened during the 2008 financial crisis. The banks got bailed out, but the little guys who were affected by their reckless behavior... yeah, they weren't so lucky. I think we need some kind of regulatory reform to make sure that traditional lenders aren't being so harsh on people. Maybe a more balanced approach to credit checks or something?

 

[Retro Ninja Conquest]

just saw this news and i'm like anyone else feel bad 4 ppl who r struggling 2 make ends meet? i mean, i know banks can b strict but turnin 2 friends n fam is just not cool these survey numbers r insane 1 in 4 households cant cover a £500 bill without borrowin its like the system r breakin