Consumers warned about borrowing from friends

Consumers should be aware that money borrowed from friends still equates to "real money".

Spokesperson for online payment firm PayPal Cristina Hoole suggests that people need to be careful when making financial arrangements with people they know.

Warning of the potential dangers of asking friends for financial favours, Ms Hoole said that lenders need to keep track of their funds.

"If you have lent the money, you need to find ways of getting that money back because we tend to forget," she said.

Ms Hoole also indicates that money is often seen as a "very embarrassing" subject to bring up as not many people like to issue constant reminders, however people "need make sure that [they're] not getting [themselves] into debt by being the one that lends money to everyone else around [them]".

Some 16 per cent of the UK’s consumers have had arguments with family members after lending money, according to a You Gov report, analysed by PayPal.