If you’re still waiting for a friend to pay your back, you’re not alone, according to new research by Finder.
This survey of 1,085 respondents revealed 1 in 4 Aussies (24%) – equivalent to 4.8 million people – are owed money by a friend.
The research shows gifts (6%), splitting a bill at a restaurant (6%), and event tickets (6%) are the most common debts that go unpaid.
Sharing a taxi/Uber (5%), travel expenses (4%), and even gambling (3%) are other common debts that go unpaid.
We can be a nation of freeloaders
Data reveals that millions of Aussies have borrowed money from their friends with no intention of paying them back.
Not repaying money breaks trust and can put a strain on the relationship, but it could also cause financial problems for the friend left shouldering the debt.
Furthermore, it also found the majority of Aussies (62%) haven’t lent money to a friend, while just 14% say their friends always pay them back.
Meanwhile, men (43%) are more likely to be left out of pocket by their friends than women (33%).
How can you take back the money you've loaned?
Your first port of call should be to ask your friend to repay the debt.
It can be a bit uncomfortable bringing up the topic of money but if you don’t ask and then you’re resentful, that can be more damaging to the friendship long-term.
Then, don’t cover for them in the future.
You might have to re-set boundaries with some people and a clear conversation is the best place to start.
If the situation is really serious, and you’re owed a significant amount of money, you can consider further action.
You can send a letter of demand, clearly outlining how much you are owed and asking that it be repaid within a certain time frame, otherwise, legal action will be started.
If you receive no response you can lodge a claim with your state or territory’s tribunal for resolving matters like this.
Keep in mind that emergency funds are not intended to be drained by your mates – so exercise discretion when lending money, especially as the cost of living crisis puts more people under financial stress.
