Thursday 30th August 2007
Individuals lending money to friends or family remain liable for the debt, it has been warned.
Stephen Rose, director of the Debt Advice Bureau, reminds Britons that if they re-lend money obtained through a personal loan, they risk damaging their own affordability prospects.
But he notes that it is up to the individual to choose whether they are willing to take on such risk.
"Whether you should lend to friends or family is a completely subjective thing," the spokesperson states.
"Think about how much damage it might do - particularly in the case of a friendship - if they couldnt afford to pay you back."
His comments follow the news that the UKs combined debt is now greater than the nations annual gross domestic product.
Stephen Gifford, chief economist at Grant Thornton - which published the findings - cited the research as an indication of the countrys "buy now, pay later" culture.
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