CHARLOTTE, N.C., Nov. 13, 2019 /PRNewswire/ -- More than 60%
of Americans have borrowed money from or lent money to friends and
family in the last five years, according to LendingTree's recent
survey of over 1,000 Americans. With 35% of those who
have lent money nearly a third of borrowers and lenders reported
negative consequences resulting from the loan, ranging from hurt
feelings (14%) and resentment (10%) to irreparable harm to the
relationship (4%).
Key Findings
- 44% have borrowed money from a family member or friend in
the last 5 years. Parents (43%), siblings (19%) and
friends (19%) were the most common lenders among respondents.
- 51% have loaned money to a family member or friend in the
last 5 years. Siblings (27%), friends (26%) and parents
(17%) were the most common borrowers among respondents.
- 24% of family/friend lenders regret their decision to lend
money in the first place.
-
- More than one third have not been repaid
- Nearly a third of borrowers and lenders reported negative
consequences resulting from the loan:
-
- Hurt Feelings: 14%
- Resentment: 10%
- Decreased Contact: 10%
- Verbal Arguments: 8%
- Uncomfortable Family Gatherings: 6%
- Irreparable Harm to Relationship: 4%
- More than 1 in 5 borrowers (22%) have not yet paid back
their family member or friend. The costs of not paying
back their loan could be adding up, as 11% said they were charged
interest.
- 65% of borrowers felt guilty about asking their family
member or friend for a loan. Despite the guilt, 67% said
they wouldn't hesitate about asking for another loan.
Americans are more willing to lend and borrow from family
than friends
A quarter of survey respondents said they would not give their
friend a loan, while only 17% said the same for family members.
When it comes to borrowing, the amount someone is willing to borrow
increases when borrowing from a family member. For amounts more
than $20,000 they were more likely to
request help from a family member than a friend.
Similarly, survey respondents were also more likely to lend
larger amounts of money to family members. Respondents were twice
as likely to be willing to lend an amount over $20,000 to a family member than to a friend.
It is worth nothing that millennials are the most likely
generation to borrow money from and lend money to loved ones.
Overall, 64% of millennials have lent money to friends/family in
the past 5 years, and 59% have borrowed money from friends/family
in the same time frame. Additionally, only 15% of millennials would
not consider lending money to a friend, compared to 21% of Gen Xers
and 38% of Baby Boomers who would not consider lending to a
friend.
Why Americans are borrowing and lending money to
others
Needing to borrow money from a loved one is usually not
something you expect to happen. But sometimes, it may be the most
practical and affordable option for borrowing money. The following
are just a few reasons why Americans are lending or borrowing
money:
- Monthly Housing Costs (rent, mortgage)
-
- Borrower: 22%
- Lender: 21%
- Auto Expenses
-
- Borrower: 14%
- Lender: 16%
- Pay Off Debt
-
- Borrower: 11%
- Lender: 13%
- Child-Related Expenses
-
- Borrower: 11%
- Lender: 10%
- Medical Costs
-
Full survey findings and additional details can be found
here:
https://www.lendingtree.com/personal/study-lending-between-family-friends/
Methodology
LendingTree commissioned Qualtrics to conduct an online survey
of 1,022 Americans — 620 of whom borrowed and/or loaned money to a
friend or family member within the last five years.
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online marketplace that connects consumers with
the choices they need to be confident in their financial decisions.
LendingTree empowers consumers to shop for financial services the
same way they would shop for airline tickets or hotel stays,
comparing multiple offers from a nationwide network of over 500
partners in one simple search, and can choose the option that best
fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student refinances, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network, and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
Megan.greuling@lendingtree.com
704-943-8208
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SOURCE LendingTree.com