Tuesday, April 13, 2010
Category:
Secured Loans
According to research conducted by money.co.uk, last year 31 percent of parents borrowed money from their children on at least one occasion.
The average borrowing was found to be £15, which is equivalent to almost £54 million during the course of the year.
It was revealed that in the majority of cases, parents borrowed money from their children when they found themselves ‘caught short for cash’. However, 4 percent of parents reportedly admitted to borrowing money to help finance ‘something I wanted’.
The research shows that 92 percent of ‘bail-out’ money has been repaid, which is equivalent to £50 million – £4 million short of the total amount borrowed. This outstanding sum is reportedly owed by 7.6 percent of those parents with a ‘familial borrowing’.
Managing Director of money.co.uk, Chris Morling, commented: "I'm sure we've all been caught short of cash from time to time, for instance when a window cleaner or milk man needs paying. In those situations there's no shame in borrowing a few pounds from the children, providing it's only temporarily. All the same, it's amazing how all those relatively small loans add up when you look at the country as a whole.
"What's more, you have to wonder how much extra money our children are missing out on if their pocket money is sitting in piggy banks, rather than savings accounts. After all piggy banks don't pay interest and are not secure against parents on the hunt for ready cash."
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Homeowners who are finding their finances a little tight at the moment could consider taking out a
secured loan to consolidate any existing debts that may be proving expensive each month. One of many finance options available, a secured loan for debt consolidation could leave borrowers with just one monthly repayment as opposed to juggling several. Furthermore, this replacement repayment could even be lower than the sum of current outgoings, thereby freeing up extra money each month. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
