Behavior That Can Explode Relationships with Friends and Family

New research indicates a strong tendency among Lithuanians to turn to their inner circle for financial assistance, with partners, parents, and friends being the most common sources of loans. Formal financial institutions like banks and credit companies are utilized significantly less often for such needs.

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The study results show that when needing additional funds, Lithuanian residents are more likely to borrow from their closest circle. We have observed this trend for some time – we have been conducting the study for five years, and throughout this period, relatives have remained one of the most frequent sources of additional money.

The study, conducted by the responsible lending platform "Credit24," surveyed Lithuanian residents about their financial situations, saving, and borrowing habits. Results showed that nearly 10% borrowed from their partners in the past 12 months, 9% approached parents, and 8% asked friends. In contrast, only slightly over 7% used bank services, and 6% obtained loans from credit companies. A notable 57% reported not borrowing any money.

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Borrowing from family or friends may seem like a simpler, faster, and cheaper solution for many. However, it also carries very serious risks, especially for the person lending the money. Without a clear agreement or officially formalized obligations, recovering unpaid money can be difficult.

Tomas Bataitis, head of "Credit24," observed that this trend of borrowing from close relations has persisted over the five years the study has been conducted. "Borrowing from family or friends may seem like a simpler, faster, and cheaper solution for many," Bataitis noted. "However, it also carries very serious risks, especially for the person lending the money. Without a clear agreement or officially formalized obligations, recovering unpaid money can be difficult."

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The person who borrows expects to be able to repay. When they don't, the lender develops negative feelings – hurt, anger, perhaps pressure or demands. This, in turn, offends the borrower, leading to all the prerequisites for conflict.

Psychologist Marius Daugelavičius further elaborated on the potential relationship damage. "The person who borrows expects to be able to repay. When they don't, the lender develops negative feelings – hurt, anger, perhaps pressure or demands," he explained. "This, in turn, offends the borrower, leading to all the prerequisites for conflict." Daugelavičius advises careful consideration before lending to a loved one, as both the relationship and the money are at risk, with no guarantee of repayment, especially for loans tied to business ventures or investments that may fail.

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So there is a possibility of losing that money. And what will you do when they don't return it?