Nine in 10 ‘feel uneasy about borrowing from family members’

Nine in 10 people feel uneasy about borrowing money from family members, a survey has found.

Some 90% of people feel this way, Saga Savings found.

Nearly half (45%) want to ask for money because they wanted to fix their own problems, while three in 10 (29%) did not feel comfortable asking.

A small minority also said that they did not borrow from relatives because they felt they might not be able to afford it.

  • 29% spending extra amounts on their credit card

  • 8% hoping to extend their overdraft

  • 9% borrowing from parents

The reluctance to turn to family members for financial help comes despite four-fifths (43%) of people saying they find January the hardest time of year financially, rising to 54% of 25 to 54-year-olds.

Four in 10 (39% ) find January tougher than usual due to Christmas over-spending.

With January 31 2020 falling on Friday, a similar proportion (38%) find the big gap between December and January pay cheques a burden.

Three in 10 (29%) say their utility bills are higher this month, while 26% blame hikes in day-to-day spending such as train fares.

Others point to their January tax bill (10%), booking a summer holiday (12%) or spending in the January sales (10%).

Many people were turning to formal debts rather than asking family members to dip into their savings, the survey found.

Nearly three in 10 (29%) 25 to 54-year-olds said spending extra amounts on their credit card would help them get through the month, while 8% were hoping to extend their overdraft.

And 9% were borrowing from parents to make their money stretch to February.

Jeff Bromage, managing director, Saga Personal Finance, said: “A perfect storm of Christmas spending, the long wait for the January pay cheque and higher bills make January the hardest month financially for many people in the UK.”