Brits bank on friends for a loan

A QUARTER of Britons have loaned money to friends during the past year, handing over an average of more than £500 each, a survey has revealed.

Around 26 per cent of people said they had lent money to a friend during the past 12 months, typically lending money to four different people, advancing an average of 133 to each one.

But less than half of the money lent during the past year has been repaid, according to the Post Office survey.

One in five people said they had lent their friends more than they could afford, while 19 per cent could not remember how much they had advanced.

Doug Strachan, director of financial services at the Post Office, said: "Millions of households across the UK have needed to tighten their purse strings as the recession has taken its toll, and with money hard to come by from many lenders, people can be thankful that they have such good friends they can rely on."