Survey Shows How Many People Are Still Waiting to Be Repaid by Friends
About 73 percent of Americans who have lent money to friends or family are still waiting to be fully repaid. The figure comes from a 2023 national survey by LendingTree and shows more tension than most people expect. Nearly three out of four acts of financial goodwill remain unfinished business.
The same survey found that 25 percent of respondents said unpaid debt damaged the relationship. Another 43 percent said they regretted lending the money at all. The numbers suggest a shared social pattern.
When Good Intentions Turn Complicated
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A 2019 Federal Reserve survey found that when faced with a hypothetical $400 emergency expense, the second most common strategy for most people was borrowing from friends or family, right after using a credit card. This shows how common these arrangements are, especially during financial strain.
The only problem is that most of these loans are informal. LendingTree reported that many people did not set clear repayment terms or put anything in writing. The casual approach leaves space for confusion. One person assumes repayment will happen soon, while the other assumes there is flexibility.
Once the repayment stalls, the dynamic shifts. Psychologist Maggie Baker, a financial therapist based in Pennsylvania, has explained that money remains an intimate topic for many people. People discuss budgets and prices all the time, but they rarely share their true financial situation. This cultural discomfort around money makes it harder to say, “Hey, about that $500…”
Why Informal Loans Backfire
There is a clear contrast between borrowing from a bank and borrowing from a friend. Banks use contracts, repayment schedules, and consequences. Friends rely on trust and loose promises.
Consumer finance guidance echoes the same advice. Organizations such as MoneyHelper recommend setting a clear repayment plan, writing down the amount owed, and agreeing on what happens if payments are delayed.