Lending money to mates who don’t pay back could cost you £100 each year, study shows
A NEW study has shown that almost a quarter of Brits are owed money by their mates and it’s leaving them seriously out of pocket.
The survey of 2,000 people by social payment app VibePay found that those whose friends owed them money were down by £98 a year on average.
Some of the most common reasons people were owed money included buying gig tickets, booking holidays, rounds of drinks and group presents.
And, many people apparently don’t chase money owed when it’s under £15, so small amounts quickly add up.
Overall, almost half of Brits don’t chase their money over awkwardness regardless of the amount, and those who do have to ask twice on average to get it back.
In fact, a survey by TotallyMoney earlier this year ranked talking about money as one of our most awkward situations, with 87 per cent of Brits saying it made them uncomfortable.
How to get owed cash back from a friend
MONEY conversations with friends can be awkward - here’s our advice on doing it right.
- Make it clear it’s a loan – Ensure your mate is 100 per cent clear that this is a loan and they have to pay you back.
- Lend what you can afford – Don’t give your friend all your rent money so they can book flights. Whatever you give away, make sure you can last without it until it’s repaid.
- Set a clear timetable – Set a date for them to repay you whether it’s payday, next weekend or by tomorrow. Giving a deadline adds pressure, and makes your friend more likely to cough up.
- Don’t justify it – It can be tempting to guilt them into repaying you with comments like, “I’m so broke” or “I need it to pay my bills”. But, don’t complicate things. Keep it simple – you lent money, you’d like it back.
- Ask, and ask again – Don’t be afraid to (politely) keep asking your friend when the money is coming. Sometimes people just forget and may need a reminder, or they may need a little nudge.
- Use tech – Repaying in cash can be tricky and can only be done in person. Ask them to pay you with a payment app, bank transfer or similar. They can do it from anywhere, and you’ll know you’ve got the right amount.
It’s easy to see why – nearly one in five Brits also said they had ended a friendship over money arguments.
When it comes to chasing cash, men are much more likely than women to confront their friends, with only 14 per cent with women saying they’d bring it up compared to 24 per cent of men.
And, it’s not just owed cash that’s emptying our pockets – money paid out of politeness costs us a whopping £279 a year.
Vouchercodes.co.uk asked 2,000 adults about money they’d spent out of awkwardness.
They found that nine out of ten would rather foot the bill for food, drinks and transport than look rude or get in a row.
So, maybe being nice isn’t free after all.
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You could also be out of pocket based on where you live, with some areas massively overcharging for fuel.
Being a woman could also make you £106k worse off when it comes to your retirement.
And, it’s not just your mates that may owe you money – thousands of HSBC customers have got refunds over incorrect charges.
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