Many people fall out over funds that they have lent to or borrowed from friends and family, it is claimed today.

Online payment services company PayPal has released research suggesting that, in the last year alone, people have lent friends and family £26 billion.

Rather than seeking out an unsecured loan or homeowner loan, many people have chosen to borrow from "best friends" - with such debt totalling £6 million.

However, the company states that almost ten million people have fallen out over such loans, highlighting the risk that such lending entails.

Cristina Hoole , PayPal UK spokesperson comments: "Everyone will, I'm sure, have either borrowed or lent out money to friends and family, often on the spur of the moment, however as the study has shown these potentially small amounts of money can soon add up. On average we're each owed almost £900."

However, those who take a low-rate loan to see them through periods of cash shortage could avoid the emotional troubles of borrowing from loved ones.

Recently, the firm discovered that food and drinks topped the list of things people planned to buy for Christmas this year.


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