Research from the financial comparison site Finder highlights that nearly two million Australians are owed money by friends, with an average debt of $1,855. This issue isn’t isolated, as nearly 10% of Australians report being unpaid by a mate, indicating that these debts, often linked to shared expenses such as group gifts, dining out, transport, and travel, can be substantial.
The trend shows that younger Australians are particularly affected, as 12% of Gen Z and 10% of millennials find themselves in this situation, compared to 8% of Gen X. According to money expert Ceyda Erem, even though modern payment apps facilitate quick settlements, outstanding balances can lead to tension among friends.
Erem acknowledges that while many debts between friends may start off small, they can accumulate and breed frustration over time. For those seeking to recover what they’re owed, addressing the issue directly is crucial. She suggests that individuals should not shy away from asking for repayment, as avoiding the conversation may foster resentment.
Before making plans that involve spending, Erem advises individuals to reflect upon their financial capacity. With many facing tight budgets, it’s essential to ensure that helping others with payments doesn’t jeopardise one’s financial stability. Addressing the money owed head-on not only helps clear debts but also maintains the integrity of friendships.