Perth, Feb 23: Millions of Australians are still waiting for friends to pay them back, with new research from Finder revealing that unpaid personal loans between mates remain surprisingly common.
According to Finder, Australia’s most visited comparison site, almost 1 in 10 Australians (9%) — equivalent to roughly two million people — have not been repaid money they lent to a friend.
Younger generations appear to be feeling the strain the most. The survey found Gen Z (11%) and millennials (11%) are significantly more likely to be out of pocket compared with Gen X (6%) and baby boomers (5%).
Rebecca Pike, money expert at Finder, said Australians are notorious for sponging off their friends.
“Money can test even the closest friendships.
“A lot of people lend money with good intentions, thinking it’s a one-off. But when friends don’t pay it back, it can feel like a breach of trust rather than just a financial issue.”
The findings highlight how informal lending continues to blur financial and social boundaries, particularly among younger Australians who may be navigating tighter budgets.
Pike said it’s important to be clear upfront when lending money.
“Setting expectations about repayments might seem awkward but it’s the best thing to do.
“We often see people avoiding asking for their money back because they don’t want to upset their friend. Not addressing it however can turn a $50 IOU into a much bigger problem.”
The survey also suggests that while most Australians are not currently owed money by friends, a notable minority are dealing with lingering debts.
When asked whether friends currently owed them money, 9% said yes, while 91% said no.
Pike said if repeated lending becomes a pattern, it may be time to reassess financial boundaries.
“Set boundaries with what you’ll cover and what you won’t for a mate.
“With living costs on the rise, don’t feel the need to take the heat for someone else’s bad budgeting.”
She encouraged those still waiting on repayments to act sooner rather than later.
“Start by simply asking your friend to repay the debt. It can feel awkward to bring up money, but avoiding the conversation can lead to resentment, which is often more damaging in the long run.
“Next, stop covering for them in the future. You may need to reset boundaries with some people, and having a clear, honest conversation is usually the best place to start.
“If the amount owed is significant, and your friend isn’t budging, a letter of demand can be the next step. This should clearly state how much is owed and set a reasonable deadline for repayment, with a note that legal action may follow if the debt isn’t settled,” Pike said.
The data comes from Finder’s Consumer Sentiment Tracker, a nationally representative monthly survey. Figures cited in the release are based on 1,003 respondents surveyed in January 2026. The tracker, owned by Finder and operated by Qualtrics, has been running monthly since May 2019.
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