Peachy’s new research shows that borrowing money is still a tricky topic, with 62% of us embarrassed to ask for money from friends and family, even when we desperately need it.
Women are more likely to be embarrassed than men, with 70% of women saying they would be too embarrassed to ask for money compared to 54% of men. Both men and women are exactly as likely (19%) to feel they can’t be seen enjoying themselves by the lender until they’ve paid the money back.
“2 out of 3 Brits do not like to borrow money from family or friends” – UK Market Research, July 2018
Almost all of us will have some form of money trouble in our lives: depleted savings, bad credit, or unexpected costs that derail our plans. When these problems occur, the fastest, simplest, and most sensible option is always to borrow money from friends or family.
People don’t like to borrow money from their friends and family because there is often disagreement on how and when the loan will be repaid. Unlike a payday loan agreement with a high street or online credit provider – there are no terms and schedules to repaying the loan.
Furthermore, the borrower has a sense of guilt about spending money, when they should be using the money spent to repay the loan.
Lastly, the borrower may at times fail to repay the loan to their family member, causing a huge rift within the family.
With borrowing money still a taboo topic, and our reluctance to talk about our money troubles with those closest to us, debt and borrowing money has a dramatic impact on our relationships with others.
“21% of Brits fear breaking our family or friends trust when borrowing from them” – UK Market Research, July 2018
Whilst the reasons for this can be good intentions, this fear of confronting our money problems can end up doing more harm than good, as those money troubles typically spiral out of control.
Couples who have debts, and find out that their partners have asked family members or friends for loans, often turn on each other. Not only because of the embarrassment of asking for money but the fact that there is debt in the first place or that their partner deceived them in asking for help from others first.
According to Relate, the UK counselling service 1 in 4 people who have been in debt stated that this hurt their relationship.
Couples end up not talking to each other for fear of causing further arguments and the debt problems themselves continue to grow and make it almost impossible to address the debt itself.
The best way to deal with money trouble is to talk about it, get advice, and deal with the problem head-on.
If you are thinking about taking a loan then in Peachy we have designed our product to give you quick cash when you need it most, and the repayments can be divided into smaller chunks.
Remember though; think very carefully before committing to any form of credit. A Peachy loan is only meant to cover urgent short-term financial obligations. There may be other credit options available to you.
For full details of Peachy’s UK Market Research see our infographic below: