Use a Prepaid Credit Card to Pay off Debts
Money-starved Brits have £44.6 billion of unpaid debts between friends or family causing unrepairable damage to their relationships, latest figures reveal.
If you have outstanding debts and are struggling to save the money to repay them each month, try using a prepaid credit card to help you budget your outgoings.
The research by MORE TH>N showed one in three people in the UK have fallen out with friends and family after borrowing money from them.
Over the course of a lifetime the average Brit lends over £2,250 to family and friends usually without charging any interest or set dates for repayment.
Although these loans are considered by many an easy option, 40 percent of these borrowers admit they will not be able to repay the money lent, and 24 percent admit to taking these loans with no intention of ever repaying them.
“People will often turn to those closest for borrowing, but as our research shows, it can turn into a great source of tension for families and friendships,” said Matt Pernet, MORE TH>N head of legal services.
“This can often be prevented by laying out clear terms for repayment.”
A further 70 percent said the disputes that arose could be avoided with a contract and more defined terms for borrowing.
Not having any savings was the most common reason for those borrowing in this way, which 30 percent admitted to, and being turned down by a financial provider was the problem for 22 percent.
Worryingly, 23 percent had to borrow because their income was not sufficient to cover their living expenses, as 22 percent used the money for food shopping, 11 percent for rent, and 12 percent to pay off existing loans.
Get On Top of Your Finances with a Prepaid Credit Card
If you are struggling to cope financially off your current income a good way to manage your money without unknowingly going into the red is to use a prepaid money card.