More People 'Borrowing From Loved Ones'

A fifth of people in debt last year borrowed money from their friends and family, according to a charity.

StepChange say their clients collectively borrowed £235billion from loved ones in 2014, an increase of £83billion in two years.

They advise against it, saying relationships can become strained and lenders themselves can end up in debt.

Average debt levels in Fife

• Cowdenbeath, £10,785.32
• Dunfermline, £12,205.54
• Kirkcaldy, £10,898.42
• Mid Fife and Glenrothes, £12,145.84
• North East Fife, £12,961.91

Over a fifth of those advised in 2014 had outstanding debt to friends and family, at an average of £3,265, appearing to show that many people turn to this as a source of informal credit when they are struggling.

The charity is encouraging people to be aware of the risks associated with borrowing from loved ones.

Jonathan Chesterman, Advice Manager, said: “Money can be an emotive subject at the best of times, but when someone is in debt to a friend or family member it can damage that relationship beyond repair. 

"Any form of borrowing can further deepen financial problems. We would always encourage people to seek advice as soon as they realise their situation is out of control rather than take on extra credit commitments.”