CCR Magazine

You are here  :Home arrow News arrow One in three need financial help from family and friends
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
One in three need financial help from family and friends PDF Print E-mail
Wednesday, 31 August 2016
Research from Equifax, the consumer and business insights expert, reveals 32% of people in the UK have had to borrow money from friends or family. The online survey, conducted by YouGov, found 31% of these loans were to pay for household essentials such as food, 23% to pay for car repairs and 18% to pay for utility bills. 

In many cases loans were taken to help pay off other debt; 13% of respondents needed the money to help with mortgage payments or rent, 11% to help pay off credit cards and 4% to pay off a short term lender.

With escalating house prices placing increased financial pressure on the younger generation, 29% of under 35 year olds have asked family or friends to help with a house deposit.

When asked about borrowing more broadly, 35% of respondents said that excluding mortgages, credit cards account for the largest part of their debt. Student loans are the biggest proportion of debt for 19% of the UK, and personal loans for 11%.

Thirty-five to forty-four year olds are the least aware of how much they owe; 23% don’t know the sum of their total debt, compared to 17% across all age groups.

The main reasons for getting into new debt include paying for home improvements or a new car, both cited by 26% of respondents. Paying a vet bill followed in third place (18%), ahead of a holiday (14%). 6% of respondents admitted they would get into debt purely to keep up appearances around family, friends or work colleagues, for example to buy the latest fashion accessories.

Jake Ranson, Banking & Financial Institutions Director at Equifax UK, said: “Personal debt is rising and becoming far more socially acceptable, with many people now willing to borrow for non-essentials such as home improvements and holidays. As a result lenders’ responsibility to ensure their customers don’t borrow more than they can afford to pay back has become more important than ever.

“Individuals also have a responsibility to take their finances into their own hands. It is concerning to see how many are asking friends and family for help paying off existing debt. By understanding how much debt they’re in and the products available, people can better manage their repayments.”
 
Enghouse Side Banner

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197