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More Britons borrow from family than use Buy Now Pay Later, survey finds
A new survey reveals that 26% of adults in Britain borrowed money from family this year-slightly more than the 25% who used Buy Now Pay Later (BNPL) services-while 15% turned to friends for financial help, often for sums under £250.
Financial strain drives informal borrowing
Research commissioned by non-profit Fair4All Finance and conducted by Ipsos found that many borrowers had been rejected by banks or credit providers. For some, informal loans still carried interest: 16% of those borrowing from friends and 8% from family reported paying extra charges.
Younger adults, low-income households, and those on zero-hours contracts were most likely to rely on personal networks for loans. A quarter of all households surveyed said they could not cover a £500 emergency expense without borrowing.
Family loans: a lifeline with risks
Carla McLoughlin, 42, a mother of three from Merseyside, frequently borrows small amounts from her mother, Val Lucus, 63, to bridge gaps between paychecks. "It's just to tide us over for a week or two," she said. The two women, who live nearby, often lend to each other without interest, though Carla has witnessed strained relationships when repayments falter.
"Some people say they'll pay you back but then they don't. Then they're messing it up for themselves," Carla noted.
Val Lucus admitted past frustrations with unpaid loans to other relatives: "You're constantly chasing it up. That can be difficult."
Hidden dangers: loan sharks disguised as friends
While 4% of respondents admitted borrowing from loan sharks in the past year, experts warn the true figure may be higher. Many victims initially believe they're borrowing from a friend, only to face escalating debts and intimidation.
"All too often we see situations where extra charges are suddenly added, the debt spirals, and borrowers find themselves trapped," said Dave Benbow, head of the England Illegal Money Lending Team (Stop Loan Sharks).
Calls for safer credit alternatives
Fair4All Finance, a government-backed initiative, advocates for broader access to affordable credit. CEO Kate Pender emphasized the risks of relying on personal relationships for essential expenses:
"No one should have to risk their closest relationships just to cover essential costs. We urgently need to expand access to safe, affordable credit so people aren't forced into difficult choices."
Government-backed Moneyhelper advises borrowers and lenders to formalize agreements in writing to avoid disputes.
Survey scope
The poll included over 4,000 adults across England, Scotland, and Wales, conducted in 2025.
