Surge in Australians Seeking Debt Repayment from Friends: New Data Unveils Financial Strain

A surprising number of individuals, nearly two million, find themselves in the position of being owed money by friends—and these debts are often far from insignificant.

A study conducted by the financial comparison platform Finder reveals that about one in ten Australians have yet to be reimbursed by a friend. This highlights a broader issue of informal debts among peers.

On average, the amount owed is an eye-watering $1,855, indicating that these debts go beyond mere pocket change and are not isolated incidents.

Common scenarios that lead to these unpaid debts include contributions to group presents, settling restaurant tabs, sharing Uber rides, purchasing event tickets, and covering travel expenses.

Young Australians seem particularly affected. According to the survey, 12% of Generation Z respondents reported being owed money, compared to 10% of millennials and 8% of Generation X, showcasing a generational trend in unpaid personal loans.

Money expert Ceyda Erem said that while payment apps make it easier to settle up quickly and prevent one person from being left to pay, outstanding balances among friends can still cause friction.

“While most debts between friends are relatively small, they can still add up and create frustration.”

Etiquette expert Jo Hayes said one way to avoid an uncomfortable situation down the track is to pay someone back straight away.

“Electronic bank transfers means there’s really no excuse for being tardy. Get their bank details and transfer the cash pronto.

“Don’t put your friends and family in the awkward position of needing to chase you for the money.”

For those wanting to recoup their losses, addressing the issue head on is the best place to start.

“The first step is to directly ask for repayment. It might feel uncomfortable, but avoiding the conversation can lead to resentment over time,” Erem said.

Erem explained that before offering to shout a meal for the table, it’s important to consider your financial standing.

“Money is tight, and many simply can’t afford to let these costs slide … it’s important to make sure you’re not putting your own financial wellbeing at risk.”

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