Research has found that 69.3% of Americans think paying bills on time shows that someone is “well-off,” but other data makes clear how far people would go to help someone else out financially.
Recent numbers from Lexington Law show that only 7% of Americans say they’d lend cash to the people they work with. But the data also shows that men are 30% more likely than women to charge interest to friends and family.
“Though the IRS requires that any loan be paid back with interest, even one to a friend or family, almost 80 percent of people never even consider that possibility,” according to the write-up.
In terms of how the research was carried out, more than 2,000 Americans took the survey for the site.
Here’s who Americans are open to lending money to
The results show that closest family members came in first place, but almost half said that they don’t like this idea at all:
- “Immediate Family:” 47%
- “No One:” 44%
- “Friends:” 20%
- “Extended Family:” 12%
- “Coworkers:” 7%
But money matters can be tricky. That being said, there are certain things to keep in mind — like how to set expectations.
“Even if you are a friend or family member of the borrower, draft up a quick note that contains the essential terms: the loan amount, the repayment deadline, the interest rate, the frequency of payments, and any late fees,” she told the site.
Also, remember that the money you have to support yourself will come and go over time. After all, research has found that Americans spend an average of nearly $3,000 annually on different vices, such as takeout, lottery tickets and more.