The pandemic has caused a shift in borrowing and lending
According to Lloyds Bank, borrowing significant sums of money from friends and family reduced by 40% throughout lockdown in the UK.
The report states that only 13% of people have borrowed money from close ones over the last 12 months, compared to 31% who had done so in March 2019.
Along with that, lending has also seen a significant decline. The loaning of money to loved ones dropped by 34% over the months of lockdown.
Only 19% have lent money to loved ones in the last year compared to 40% in March 2019.
In fact, 18-24 years olds are the most likely to lean on friends and family for financial help. Although, borrowing amongst this group has dropped from 51% to 30%.
Among those who have borrowed money recently, the main reason for doing so was debt consolidation. In fact, 16% of people citing this as the reason.
For 14% of the respondents, the purchase of the car is the second most popular, followed by home improvements accounting for 12%.
Family and friends who have been lending money are much less likely to be happy about doing so. Only 51% saying they were pleased to be able to help someone out, compared to 61% in 2019.
We’ve reported that 56% of the respondents are in debt due to the financial burden caused by the pandemic.