A significant shift is occurring in how Britons access cash, with new data showing that people are now as likely to borrow from family and friends as they are to use modern financial services.
The Rise of Personal Lending
A major survey commissioned by the non-profit organisation Fair4All Finance has uncovered this growing trend. The research, which polled more than 4,000 adults, provides a stark picture of the UK's personal finance landscape.
While 25% of respondents had used a Buy Now Pay Later loan this year, an even greater 26% had turned to family members for financial support. A further 15% reported borrowing money directly from their friends.
Who is Most Affected?
The data reveals that this trend is not evenly spread across the population. Certain groups are far more reliant on their personal networks for financial help.
Younger adults, families with children, and individuals on zero-hours contracts or in lower-paid work are the most likely to seek loans from those they know. For many, this becomes a necessary step after facing rejection from traditional high street banks and other mainstream lenders.
The research also highlighted a worrying vulnerability among UK households. It found that a full quarter of all households would be unable to cover an unexpected £500 emergency bill without having to borrow the money.
Share Your Experience
We want to hear from people across the UK who have experienced this firsthand. If you have asked family or friends for a loan, we would like to know what it was for, why you didn't go to a traditional lender, and how the experience has affected you and your relationships.
You can share your story anonymously if you prefer, and we will handle all data securely in line with our privacy policy.
