Millions of Americans are loaning out their credit cards — Forever 39 Podcast
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Loaning money out to a family member or friend can lead to big trouble, especially when the recipient fails to pay back the dough. In some cases, things can get so bad that the parties involved stop speaking to each other.
Despite these risks, people continue to open up their wallets to help their loved ones.
The Chicago Tribune reported on a survey by CouponCodesPro that looked at just how prevalent the problem is. According to a poll of nearly 3,000 U.S. adults, 66 percent of them have lent money and never gotten it back. The CouponCodesPro survey, according to the article, found the average amount owed is approximately $522. And this probably won't come as a shock to some of you, but former romantic partners were found to be the most guilty for not paying the money back.
Another survey from CreditCards.com found that people aren't just writing checks or handing over cash, but they're also giving loved ones their credit cards to use. Considering that some people have a pretty high credit card maximum, it almost seems foolish that people would do this.
Of those polled in the survey, 49 percent of current or former credit cardholders admitted to letting someone else use their personal credit card, with 35 percent of those noting an unfavorable outcome.
Some of the problems reported include:
- 19 percent said overspending was a problem;
- 14 percent said they never got paid back for what was spent;
- 10 percent said the recipient never returned the credit card.
According to the CreditCards.com survey, millennials were more likely than older generations to report getting burned by lending their credit card.
Not surprisingly, credit card holders are more comfortable loaning their credit cards to their spouses, parents or children, according to the CreditCards.com survey.
If you've been asked by someone to borrow money, and don't know what to say, perhaps these tips from U.S. News & World Report will help.
Join us for this episode of Forever 39 as we reveal our personal experiences with loaning money to loved ones, and whether we'd do it again. Have you loaned money to a loved one in the past? Did you get paid back or are you still waiting?
Also from this week's Forever 39 podcast — What do you consider cheating? PLUS: Ways you could be harming health. Click on the podcast player above to hear the entire episode. Share your thoughts on all of them below, on Twitter, on Facebook or at firstname.lastname@example.org.
— Annette and Megan, Forever 39
Join us for next week's podcast when we discuss women and retirement, wedding costs in New Jersey, and how to support a friend going through a health crisis.