Study: Your Family Member Probably Won't Pay Back the Money You Lent Them

By:
Chris Gaetano
Published Date:
Oct 2, 2017
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While many no doubt have already learned this the hard way, a recent study has found that if you lend money to a family member, it is unlikely that you will get all of that money back, according to CNBC. The study, conducted by Lending Tree, found that people who get loans from family members will pay back about 57 percent of the initial sum. This is across all generations, where the average amount of money people reported to have loaned in their adult life is $5,022 and, of that, an average of $2,857 has been repaid.When broken down by age, the study found that Baby Boomers tend to pay back back 62.5 percent of what they borrowed; Generation X paid back 75.5 percent; and Millennials paid back 54.9 percent. The most common reason to seek out loans from family members are down payments on a home; debt; home repair; education; other; child costs; medical costs; monthly housing costs; car expenses; and food. Also, the study found that most family loans come from parents: 76 percent of men and 63 percent of women reported borrowing money from their parents, and 10 percent for both sexes borrowed from a sibling. 

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