By bizn_fun 
A lot of people turn to family and friends because they have been turned down by banks, credit cards or Buy Now Pay Later services.
For others it could be a cheaper option to avoid overdraft fees or high-interest short-term loans.
Kate Pender, the boss of Fair4All Finance, said it was important everyone has access to credit for the unexpected moments in life.
“No one should have to risk their closest relationships just to cover essential costs. We urgently need to expand access to safe, affordable credit so people aren’t forced into difficult choices,” she said.
Of those surveyed, 4% had turned to a loan shark, or unregistered lender within the last 12 months.
That figure could be even higher, as some of those who think they are borrowing from a “friend” may actually have borrowed from a loan shark – a person who is lending to multiple people, charging high interest, and often using intimidation to get repayment.
Dave Benbow head of the England Illegal Money Lending Team, known as Stop Loan Sharks, said about half of all people the organisation supports believed the loan shark was a friend at the time of borrowing.
“All too often we see situations where extra charges are suddenly added, the debt spirals, and borrowers find themselves trapped,” he said.
Moneyhelper, external, an independent website backed by the government, says it’s important to think carefully before borrowing from someone in your family or a friend. If you struggle to repay this could put pressure on you and your relationship.
They suggest good forward planning and a written agreement can help whether you’re the one doing the borrowing or lending.