Consumers ask friends for debt help

Consumers up and down the UK are having to resort to financial debt help from people in their social circle, to top up their personal income.

New research from the Post Office finds that as much as £7 billion has been lent, by friends, to struggling consumers over the last 12 months.

The study by the postal service group shows many people in the UK are struggling with the recession – with 26 per cent of people giving handouts to their friends.

The amount borrowed was typically around £130.

With the onset of major spending cuts about to hit the nation, this could lead to consumers looking for debt advice.

Director of Atlantic Financial Management, Kevin Still says, "Borrowing from the 'bank of Mum and Dad' is fairly commonplace, but having to resort to small loans from friends as a necessity should be the time to seek professional financial or debt advice.

Published government statistics often miss out the grey economy that lies below high street lending, as is the case with the true state of unemployment in the UK with millions of people in serious debt problems."

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