People turn to family and friends for money more often than Buy Now Pay Later loans, a new survey has suggested, and for most of them it was for less than ?250.

The survey of more than 4,000 adults commissioned by non-profit Fair4All Finance, shared exclusively with the BBC, found that while 25% of respondents had taken out a Buy Now Pay Later loan, 26% had borrowed from family and 15% from friends this year.

Many relied on friends and relatives because they had been turned down by traditional services like banks - but some of those loans still come with interest.

For 42-year-old Carla McLoughlin, borrowing small sums from her mum is crucial.

The mother-of-three explains that the money is needed "just to tide us over for a week or two until we get paid".

But some people said borrowing from their nearest and dearest had affected those relationships.

Of those who borrowed from family, 9% said it weakened the relationship, and that figure rises to 17% when borrowing from friends, with different expectations of repayment souring relationships.

The dynamics get trickier for many with 16% of people who borrowed from friends and 8% of those that borrowed from family saying they were charged interest.

Val Lucus, Carla's 63-year-old mother, said she's lent to other family members who didn't pay her back.

"You're constantly chasing it up. That can be difficult," she said.

'We do it all the time'

A head and shoulders crop of Val Lucus in a checked jacket and white hoody smiling and looking into the camera against a grey background.

Val Lucas lends and borrows money from her children

Fair4All Finance was set up 2019 by the government, and campaigns to make financial products available to a wider group of people.

The research was carried out in collaboration with polling firm Ipsos, and included people from England, Scotland and Wales.

It found that younger adults, households with children, and people on zero-hours contracts or in lower-paid work are most likely to borrow from friends and family.

The research also showed that a quarter of all households would not be able to afford a ?500 emergency bill without borrowing.

But the flow of cash is not all in one direction for Carla and her mum Val. They live close by in Merseyside, and regularly have to borrow from each other.

"We do it all the time. If I need ?50 just to get a few bits to tide me over," Carla said.

"Two weeks later she'll be short so I give that back and if she needs a bit extra I give it to her."

Carla has been turned down for a loan in the past and struggled to get a phone contract, so Val has been happy to help.

Carla has also seen her mum pawn her grandmother's rings in the past.

"I was crying my eyes out, saying mum why didn't you ask me?" she said, adding that she wants to help her mum whenever she can, and has paid for her mum's gas and electricity bills in the past.

The pair said it has not impacted their relationship, and have never charged each other interest, but they have seen it go wrong for others.

"Some people say they'll pay you back but then they don't. Then they're messing it up for themselves," Carla added.

Nowhere else to turn

A lot of people turn to family and friends because they have been turned down by banks, credit cards or Buy Now Pay Later services.

For others it could be a cheaper option to avoid overdraft fees or high-interest short-term loans.

Kate Pender, the boss of Fair4All Finance, said it was important everyone has access to credit for the unexpected moments in life.

"No one should have to risk their closest relationships just to cover essential costs. We urgently need to expand access to safe, affordable credit so people aren't forced into difficult choices," she said.

Of those surveyed, 4% had turned to a loan shark, or unregistered lender within the last 12 months.

That figure could be even higher, as some of those who think they are borrowing from a "friend" may actually have borrowed from a loan shark - a person who is lending to multiple people, charging high interest, and often using intimidation to get repayment.

Dave Benbow head of the England Illegal Money Lending Team, known as Stop Loan Sharks, said about half of all people the organisation supports believed the loan shark was a friend at the time of borrowing.

"All too often we see situations where extra charges are suddenly added, the debt spirals, and borrowers find themselves trapped," he said.

Moneyhelper, an independent website backed by the government, says it's important to think carefully before borrowing from someone in your family or a friend. If you struggle to repay this could put pressure on you and your relationship.

They suggest good forward planning and a written agreement can help whether you're the one doing the borrowing or lending.

A red, black and white graphic reading Cost of Living Tackling It Together with a woman filling a mug from a kettle

Can I lend money safely?

Be completely honest with yourself about whether you can afford to lend the money if it was never paid back.

If you feel pressured, or awkward, then say no. There are safe borrowing options, like Credit Unions you could direct a loved one to.

Keep a written record - an email, text or Whatsapp could be enough - saying how much you're lending and when you'd like to be repaid.

Offer to help in another way - perhaps pay a bill directly for someone in need.

Encourage the person asking to get help from a debt organisation. Help them get on top of their finances, don't just keep bailing people out. (BBC)

Update news