Brits Lend to Friends and Family at 0% Interest, Reveals lovemoney.com

LONDON, April 1, 2010 - 64% of people have lent more than GBP200 to a friend at some
point in their lives, according to money management website, lovemoney.com.
Another 60% have lent money to relatives.

Some lenders have been very generous - 8% of people who have
lent to friends lent more than GBP20,000! What's more, 89% didn't charge any
interest.

Ed Bowsher, head of consumer finance at lovemoney.com,
comments: "I think lending more than GBP20,000 to a friend is going way
beyond the bounds of normal friendship. If you're going to lend such a large
sum, I think you should seriously consider charging interest.

"Even if you're lending a smaller amount, I think you should
assume that you'll never get the money back. Then there's no risk the
friendship will be damaged. It's also worth drawing up a written agreement.
It doesn't guarantee repayment but it may make the borrower take the
commitment more seriously."

Other key findings include:

Lending money to friends

    - 24% said the largest amount they had lent to friends was
      GBP200 - GBP499

    - 18% said largest amount was GBP500 - GBP999

    - 33% said largest amount was GBP1000 to GBP4999

    - 10% said largest amount was GBP5000 to GBP9999

    - 7% said largest amount was GBP10000 to GBP19999

    - 8% said largest amount was GBP20000+

    - 40% of the lenders got their money back, 31% never did, 29%
      were partially paid back or are still being paid back

    Lending money to relatives

    - 18% said largest amount they had lent to relatives was
      GBP200 - GBP499

    - 22% said largest amount was between GBP500 - GBP999

    - 34% said largest amount was between GBP1000 - GBP4999

    - 12% said largest amount was between GBP5000 - GBP9999

    - 8% said largest amount was between GBP10,000 to GBP19,999

    - 5.5% said largest amount was GBP20,000+

    - 52% got their money back; 24% never did; 24% partially got
      their money back or are still being paid back

Notes to Editors

The survey was answered by 1066 lovemoney.com users in February 2010.

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For further information or to arrange an interview with Ed Bowsher, please contact Ed on +44-(0)20-7297-8141 or ed at lovemoney.com