Parents ‘Helping Grown Up Children Pay Off Loans’
Keywords: loand, debts, debt, consolidation, personal, secured, finance, credit, cards
Millions of parents are helping their grown-up children pay off their debts, new figures reveal.
In statistics released by MoneyExpert, some 40 per cent (7.5 million) of adults with grown-up children have given their offspring aid to either pay off completely, or to contribute a payment towards, money owed on utility bills, loans and other areas of financial demand. As a result, the price comparison website stated that parents “face a heavy burden of debt” in helping their sons and daughters - which in turn could impact their own ability to manage their finances and make loan repayments.
Mobile phone bills and car finance deals are the largest sources of debt parents have helped their adult offspring to meet the costs of during the last three years - each accounting for 24 per cent of respondents. These were closely followed by credit card bills which have been paid for by 23 per cent of parents. Six per cent of respondents have also aided their children in making payments on unsecured loans, as one in five (20 per cent) help with overdraft costs. Meanwhile, about one in ten have shelled out their own money to make payments on their child’s mortgages, in comparison to the two per cent who have contributed towards secured loans.
Research from the price comparison website also showed that those paying their grown-up children’s debts have spent some 2,540 pounds over the last three years doing so. Although most (51 per cent) are shelling out between 200 and 2,000 pounds in financial aid, some 13 per cent have spent between 5,000 and 20,000 pounds - which in turn could increase pressure on their ability to manage their own finances.
Commenting on the news, Sean Gardner, chief executive of MoneyExpert, said: “Having a child is an expensive business and unfortunately spending on your kids doesn’t stop once they reach adulthood. With the cost of living so high at the moment and with so many people living a buy-now-pay-later lifestyle, parents are often forced to help out their children financially in later life. Whether it’s an overdue credit card bill, an unauthorised overdraft or even a missed mortgage repayment, millions of parents are forking out on behalf of their children.”
Overall, the Midlands is the “child debt capital” of the country, as parents are paying an average of 2,739 pounds to service money owed by their offspring on loans, credit cards and other forms of borrowing. In comparison, consumers in Scotland are contributing the least towards their children’s debts - at a typical amount of 2,265 pounds. Meanwhile, the firm stated that over 2.48 million adults are currently “very concerned” about how they will be able to manage their finances as the five interest rate rises carried out by the Bank of England since August last year begin to take effect.
As a result, those worried about their capacity to handle their money, whether they are a parent or one of their grown-up children looking to become financially independent, may wish to take out a debt consolidation loan as a means of tackling money owed to various creditors. By merging existing loans, overdrafts and credit cards into one low-rate monthly amount, consumers could well find they have more money available to spend. However, Adrian Coles, director general of the Building Societies Association, advised those wishing to apply for a loan to ensure that they will always be in a position to afford repayments.
Tom Dawson is the Editor in Chief for Essentially Home Loans where visitors can apply for cheap loans online. We also specialise in debt consolidation loans, and secured loans. Visit our site today www.essentiallyhomeloans.co.uk
Previous Articles Highlighter:
Young People Witness Rise In Inflation (1)
"This would have the biggest impact on the inflation rate facing the over-75s, who spend a much higher proportion of their household budgets on these items," she stated. Meanwhile, consumers have been advised to make sure that they leave their finances in sufficient shape to allow them to handle any unexpected demands put on their spending.
Loans Can Be 'A Force For Good' (2)
It spreads the benefits of a growing economy throughout society. The credit industry uses effective data sharing to ensure we lend responsibly. But consumers, too, must be responsible borrowers.
The Pre-Retirement Stage (3)
What you have a passion for? 5. You are single. You finally get to retire and do what you have dreamed of! Do you have a plan?
Could You Pass A Retirement Exam? (4)
Kim Kirmmse Toth is a certified life coach. She works with baby boomers on the many transitions faced including the non-financial side of retirement planning. She may be contacted at: kim@myretirementbydesign.com or at her website: www.myretirementbydesign.com
Seychelles CSLs - The Investment Solution (5)
Over the last ten years or so, the Seychelles offshore financial services industry has experienced a significant increase in business depth, volumes and international profile. A central factor in Seychelles' rise as an international financial centre has been its strategy of striking an effective balance between sound regulatory practice and pleasing the market-place.
Bank Of England Shipwrecked On Northern Rock (6)
Thirdly, is the Bank of England to blame? While the Governor of the Bank was forced to make an embarrassing U-turn, the hidden hand of the government is easy to detect.
Equipment Leasing Gives Your Business The Competitive Edge (7)
How equipment leasing brokers work: Shopping equipment financing options can be a daunting task, which is where a broker can help. Brokers handle all of the legwork and have the expertise and contacts to find the best terms, prices, and conditions.
Education For Online Trading (8)
You can make quite a bit of money for yourself if you give yourself some time to become well acquainted with what it takes to be successful in the art of online trading.
Coins To Own Now For The Regular Coin Collector Part I (9)
So, what is a regular collector to do? First, I collect for the enjoyment of the hobby. While I will attempt to identify coins that most of us can afford that will likely increase in value, it should be noted, past history of coin price movements is NOT an indicator of future performance.
How To Lower Your Credit Card Interest Rates (10)
Your credit score is what will determine the company's trust in you, and it will increase or decrease your chances of getting a lower interest rate, depending on how good or bad it is.
Is Buying A Car With A Credit Card Possible? (11)
Rewards cards give you benefits based on how much you spend. Since buying a car is such a huge purchase for a credit card, it would give you many more rewards than it would if you had just used the card to buy groceries.
When Is Your Credit Card Interest A Tax Deduction? (12)
Now, instead, you have more interest to pay on your home loan, or your mortgage. That kind of interest is in fact tax deductible. By transferring your credit card balance to your home equity line of credit, you turn the money you owe on your credit card into money that you owe on your home.
Get Rid Of Your Bank And Still Get Out Of Debt (13)
Two well known sites are proper.com in the United States and Zopa.com in Britain. There are plans to build one in Canada too, which could be launched as soon as fall 2007.
Portugal - An Investors Home Away From Home (14)
Any unforeseen alteration in the currency market may adversely affect people borrowing money via euro mortgage. The lower base rate of ECB as compared to that of the Bank of England does not warrant savings on reimbursements for persons opting for a euro mortgage.
How To Buy A Home After Foreclosure (15)
Keywords: Foreclosure, credit, buying a home It is not always easy, but it is possible to buy a home after you have gone through a foreclosure. Since foreclosure can greatly affect credit, it makes things difficult from the beginning.
Can Consumer Credit Counseling Help Avoid Foreclosure? (16)
Many times a credit counselor can help minimize penalties and negotiate lower payments with lenders. They can also help to settle your debt for less than what is due on some occasions.
Cheapest Car Insurance -Tips To Help You Find The Cheapest Car Insurance Quotes (17)
Check online for customer car insurance reviews and ratings. And keep in mind that a few negative reviews can happen to auto insurance company. You want to make sure that you have full coverage or at least the coverage you basically need and can afford in your insurance policy Also you want to know that your assigned insurance agent or the company reps will be easy to contact at their office.
Consumers Should Keep 'Close Eye' On Credit File (18)
Stating that the document acts as a "snapshot of what you owe and how well you are managing your finances", he claimed that analysing a credit report can help consumers work out how much they need to spend on essential goods and the amount of disposable income left each month - which in turn could go towards a savings scheme for later life or servicing loan repayments to help "weather the credit storm".
Financial Aid: Beware Of Scholarship Scams (19)
But if it is not a loan, any fees that may be charged, such as the origination and guarantee fees, are taken out of the disbursement check. While scholarship scams are relatively new, it should be noted that they share the usual characteristics of old-fashioned confidence schemes: (1) unfounded guarantees; (2) claims to privileged information; (3) promises of a "sure thing" - no risk; and finally, the hallmark of all scams, (4) all money is paid up front.
New Financial Advisory Service Launched In North Of England (20)
Meanwhile, those worried about their ability to manage their finances - which could include concerns on being able to pay back personal loans and credit cards - will also be able to visit Citizens Advice branches in Bolton, Barrow, Chorley and Allerdale, get information from government-run websites or call a specialist helpline.
Newer Articles Highlighter:
'Concerning' Number Of Parents Sacrificing Financial Future (1)
Consequently, a number of consumers were shown to be using "cash windfalls" to fund their child's tuition, as 16 per cent look to use their bonus and eight per cent use inheritance money - both sources of income which are not guaranteed.
Benefits Of Staying In A Holiday Rental Home (2)
Overall, staying in a holiday rental home is a great way of ensuring that you have a brilliant holiday and it is more than likely that you will want to go back to the same place the following year.
Brits 'Set For Financial Difficulties In Later Life' (3)
Meanwhile, just under a quarter (23 per cent) of respondents state that they are concerned about their financial security rather than their health. Some 26 per cent reported that the only investment that they have is the value of their property.
Dealing With Bad Credit Melodrama (4)
If you are currently reeling under the burden of debt, you should make an effort to not be left with bad credit. Going in for a debt consolidation plan could be a solution to your problems.
The Advantages And Disadvantages Of Using Department Store Credit Cards (5)
Get a card that allows you to save money on the products that you buy, and keep only those cards. Once you pay them off, don't keep them. Having these cards will tie up your credit line and make other cards difficult to acquire.
All About Thrift Savings Accounts Part Two (6)
Small capitalization stock investments or S funds are invested in a portfolio of stocks that replicate the performance of the Wilshire 4500 Index, and are the largest U.S. stocks, excluding stocks of the standard and poor, or S&P index.
Retirement Options 457 Plans (7)
Retirement planning is an important step in ensuring financial stability for both yourself and future generations, and it is essential that you speak with your financial advisor before deciding to join this, or any other type of retirement plan.
What Makes A Great Credit Card Offer? (8)
You need to be able to talk to someone who is willing to listen if you feel that there has been a mistake made by that company. Court helps people to learn about how to find credit card applications.
The Most Important Tips You Can Teach Your High School Child About Credit Cards (9)
If teenagers simply follow the rules stated above, they will be able to avoid unfortunate late fee charges and actually gain real life rewards and advantages in the credit card business.
Dealing With Home Improvement Questions (10)
Getting home improvement loans is quite a simple thing really. You can use the property as collateral as you go in for a secured loan to forward you the money for the renovations.
Increasing Our Credit Card Points (11)
The important thing is to spend our money wisely. Credit cards give us the freedom to pay for literally anything. However, this does not mean that we need to buy all the time.
Retirement Investment In Portugal - Our Story (12)
Of course there are for in no location in the world everything is ideal. For the purchase of the more luxury things, visit a contemporary theatre, concert and museum you must go to Lisbon.
Alentejo Region In Portugal Is Called The New Tuscany (13)
If you buy in a rural area be aware of the fact that in some areas only 20 square meters may be build per hectare. In a village centre this is not the matter.
16 Simple, Everyday Ways To Save Money (14)
It is about being kind to the environment. It is about spending less money on material things, so that I have more time and money to spend on memories with my family.
A Place In The Sun To Feature The Alentejo Region Of Portugal (15)
Why just don´t pay a visit to what is called the new Tuscany or Riviera. You can fly in through Lisbon or Faro in the Algarve and you will not regret it.
Constructing Your Own House In Portugal (16)
The final result was even better then we could have dreamed. would we advise anyone to build in Portugal..? The fact that we bought our second piece of land two weeks ago, says it all!
How Do You Apply For A Credit Card (17)
Finally, review as many cards as you can, and take the time to do it thoroughly You don't have to feel pressured by the credit card company phone calls that invade your home and telephone.
Growing Interest In Portugal And The Alentejo More Specific? (18)
So this area will remain as beautiful as it is. The rich cultural heritage of Portugal and in this area in specific makes it even more interesting to invest in property here.
Back To School Savings: Six Ways To Save Money During Back-to-School Time (19)
Make sure to stick to the official supplies list provided by the school. Then shop online (or comparison shop offline) for other items you might need, such as clothes and shoes.
Why Lottery Winners Lose It All (20)
6) Keep releasing your negative emotions and thoughts until you have what you have been wanting all these years. 7) Act upon the incredible ideas that your subconscious shares with you fearlessly.
Permalink to Parents ‘Helping Grown Up Children Pay Off Loans’