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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

UK "friendship debt" at over £4bn, study suggests

08/12/2008

Consumers in Britain are owed a total of more than £4 billion in co-called "friendship debts", it has been suggested.

According to research conducted by PayPal, half of the adults recently questioned had lent money to friends or family in the last 12 months, with 24 per cent of them still waiting to be paid back.

With the average cash total still owed equating to £823 per person, this means that around £4.71 billion remains outstanding, the online payment provider claims.

"It`s only natural that we`re happy to lend money to a friend in need. But when a debt is personal, bashful Britons find it very difficult to pluck up the courage to ask for it back," stated Mark Hodson, PayPal UK`s marketing director.

He went on to advise that consumers who choose to lend money to a friend or family member should agree upfront about when they would like to get the cash back as this can save embarrassment and problems further down the line.

Meanwhile, financial expert and TV presenter Jasmine Birtles said that spending too much during the festive season can lead to debt and disappointment.

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according