A survey conducted by LendingTree has revealed a troubling trend that those who have loaned money to friends or family, about 73% have yet to be repaid in full.
That means nearly three in four people who extended loans in good faith are still waiting for their money back. Beyond financial loss, this repayment gap is taking a toll on relationships, 25% of respondents reported that the unpaid debt damaged their relationship, while 43% expressed regret for having borrowed in the first place.
Most of these loans were made informally, often with no written contracts, repayment schedule, or interest terms. This casual approach may ease lending in the moment but frequently leads to tension later. In LendingTree’s findings, the lack of clarity and structure has resulted in not only financial shortfalls but also emotional strain among loved ones.
Financial advisors emphasize that loans between friends or family should be approached as seriously as any business agreement. They recommend setting clear terms, such as repayment timelines, amounts, and consequences for default—and documenting them in writing. This transparency helps align expectations and reduce potential friction.
A recent MarketWatch story illustrates how even generous lending can have unintended fallout. One individual recounted lending $120,000 across relationships, tenants, friends, and family only to suffer emotional exhaustion and financial loss. Experts in the story urged setting firm boundaries and only lending money you’re prepared to lose.
