The government has a monopoly of force, can garnish your wages or outright take your stuff.
I wouldn't want to borrow from friends or family either, but it's a different kind of risk of harm.
i expect to see a heavy wealth divide here
people without generational wealth advise their children against borrowing from those you have personal relationships with, because the relationships are 𝘧𝘢𝘳 𝘮𝘰𝘳𝘦 𝘷𝘢𝘭𝘶𝘢𝘣𝘭𝘦 than favourable interest terms on small loans