Over seven in 10 people say they would lend money to help loved ones put down a deposit on a house.
The Black Hole of Borrowing study from Virgin Money reveals the top reasons people will lend their money to others are to help them put down a deposit or pay off debt. Over half would lend money if a loved one needed a car, four in 10 would help out financially for a holiday, while over one in 10 would offer money if a family member or friend wanted plastic surgery.
Seven in 10 have dug deep to offer financial help, with the average loan being £168. But the study also shows big-hearted Brits are losing £3.4bn in a black hole of borrowing, with almost half of those who lend money never seeing their cash again.
Over one in five say have put up with a lending loss because they felt too embarrassed or mean asking for their money back, while 2% even had to write off debts when the borrower left the country or died.
Erica Bell, spokesperson for Virgin Money, says: “It seems our generosity knows no bounds with large sums of cash being loaned for everything from house deposits to holidays.
“It's not just a new outfit or phone bill we'd be prepared to open our wallets for. We will happily lend on average up to £1,369 to family or a friend but, with 15% admitting to not paying loans back, we might be better off keeping our wallets closed.”
The study also reveals Scots are the most likely to open their wallets with nearly eight in 10 having loaned money to family or friends; dads are less likely to lend to their children, with under three in 10 lending money compared to over four in 10 of mothers, while one in five people in the Midlands admit they have not paid a loan back more than anywhere else in the country.