Secured loans could save friendships
08/12/2008People who do not want to risk a friendship over money may find secured loans can provide a lifeline.
Research from online payment provider PayPal has shown half of all Brits have lent money to friends or family in the past year and some 24 per cent are sill waiting to be paid back.
With the average amount still owed standing at £823, relationships could become strained.
Mark Hodson, marketing director with PayPal, said: "When a debt is personal, bashful Britons find it very difficult to pluck up the courage to ask for it back."
He suggested, before lending money to family and friends, people should agree up front when they expect to get the cash back.
Mr Hodson added this could save "a lot of hassle and embarrassment" in the long run.
However, homeowners who are keen to avoid putting any strain on relationships with family and friends may find a secured loan can be useful if they are short of money.
Furthermore, interest rates on this type of borrowing are generally competitive, as a person's house is used as security.
 © Adfero Ltd
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