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Debt help if you owe money to friends and family

Borrowing money from those you know – such as your family or friends – can at first seem a savvy financial move, as you avoid the need to pay interest, such as you would to a bank. However owing money to friends and family can impact your relationship with them if they feel that you’re not keeping up with your obligations.

Debt help tips for tackling debt owed to friends and family:

    • Ideally you should create a written contract to define the terms of the loan – such as the repayment amount, the dates the payments are to be made, and what should happen if you’re no longer able to keep up with repayments.
    • If you don’t have an agreement in place, you should seek to create one as soon as possible. Approach the person with a full rundown of your finances – including total debt owed, income and expenditure. From this common understanding, you should make a proposal as to how much you can reasonably afford.

Worried about debts that won't go away?

  • If you’ve arrived at a point where your friend or family member is demanding payment, you should seek expert debt help as soon as possible. You may also want to explore whether you can apply for credit from a traditional lender to repay the amount owed.

Ready to seek debt help? Talk with the National Debt Help team on 0800 002 9051.

*An Individual Voluntary Arrangement (‘IVA’) is subject to the customer meeting qualifying criteria and gaining creditor acceptance. Monthly IVA payments include fees and may differ to the example provided, based on the assessment made of your own personal circumstances – these fees will be clearly explained to you in writing by your IVA company. Debt write off amounts are subject to creditor acceptance and vary by individual customer based on their own financial circumstances, and are applied upon successful IVA completion.

Substantiation example, Someone owes £60,000, they pay £100 over 60 months which equals £6000, write off amount would be £54,000 which is 90% of total debt level. Upon submitting your details on this website we will pass your details to one of our approved partners as this website does not give any advice.

Free debt counseling, debt adjusting and credit information services are available from the Money Advice Service.

National Debt Help
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