Six out of 10 people have lent money to family and friends but only half of these ever get it back again, research showed.
Around 60% of people said they had advanced cash to a member of their family or a friend, lending an average of £607 a time, according to AA Personal Loans.
But only half of people who make an informal loan ever get repaid, with many admitting they are either too embarrassed or feel too mean to ask for their money back.
A further 9% of people said they had to write debts off after breaking up with the person they had lent the money to.
The majority of people had lent money to someone to help them cover day-to-day expenses or to use as a deposit for a house or a car, but others had advanced cash to go towards holidays or to be spent socialising.
The amount of cash lent through informal loans looks set to increase, with 27% of people admitting they are more likely to be forced to borrow money this year than they were last year.
Mark Huggins, head of AA Personal Loans, said: "Brits are clearly extremely generous when it comes to lending money, with large sums of cash being loaned to family members and friends for everything from house deposits to holidays.
"However, our research indicates that unless you can afford not to expect the money back immediately, don't feel pressured into shelling out your hard earned cash."
Source : http://ukpress.google.com/article/ALeqM5i4RIlKoFhKlh76fTvM8JV9WgRhDQ
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