New research by Flender.co.uk has found that 42 per cent of people in the county will be starting 2017 £100 poorer having lent money to loved ones and never having it paid back. Nearly one in 20 of those surveyed had lent over £5,000, leaving them seriously short-changed.
And almost a quarter of those involved (23 per cent) said they have fallen out with friends over money with 57 per cent saying they would use an app for lending if it made it safer and more reliable to lend money to friends and family.
Flender, a mobile platform that allows consumers to raise finance through friends, family and social network connections, also found that 95 per cent of people have never charged interest to anyone they know, but half would consider doing so.
Kristjan Koik, Co-Founder & Managing Director of Flender said, "Asking people you know for your money back is awkward and often leaves people out of pocket. The last thing people need during an expensive December is unreturned loans from friends and family.
“The social lending market among friends, family and business connections has never been formalised, which is crazy when you consider that this is a market worth just under £3 billion a year.”