Taking a Loan From Family is Risky for Lender and Borrower, CNBC Survey Finds
Given a choice between maxing out a credit card or borrowing from family, lower-income households and people of color were more likely to take a loan from a relative, a CNBC Invest in You and Acorns Savings Survey found.
When the credit card company says no, the “bank of family” just might say yes.
Given a choice between maxing out a limit on a credit card or taking a loan from a family member, lower-income households and people of color are more likely to turn to relatives, according to a CNBC Invest in You and Acorns Savings Survey.
Among participants with household income below $50,000, more than half said they would ask to borrow from a family member.
Further, 51 percent of black participants who took the survey said they would ask a relative for a loan, while nearly 6 in 10 Hispanic respondents said they would prefer to turn to family.
The survey was conducted for CNBC by SurveyMonkey in March among a national sample of more than 2,300 adults.
White participants and higher-income households were more inclined to max out their cards. More than half of the people in both cohorts said they would prefer plastic to borrowing from relatives.