Wednesday, January 17, 2007
Category:
Consolidation
Clydesdale Bank recently reported that Scottish children received £190 million in cash over Christmas. As half of parents struggle financially in January, 1 in 10 will end up borrowing money from their offspring.
The latest research from the Clydesdale Bank found that more than 51% of parents in Scotland will struggle with their finances in January while their children receive an average of £191.50 in Christmas cash. 8% of parents admitted that they may have to borrow from their children to get them through to pay day at the end of January. Some even said that they would return their children’s Christmas presents in order to raise cash.
Some parents have come up with other solutions to get through January’s financial hardship. These include cutting out restaurant visits, and trips to the cinema and pubs.
Steve Reid, Clydesdale Bank’s director of retail banking, said: ‘January is possibly the hardest month of the year financially for most Scots. Many have to make their December salary last through Christmas and until the end of January. Cutting out pub visits or meals out to save money may be alright for some as they may coincide with a New Year diet! Raiding the children’s money box must surely be the last resort though, especially if the parents struggle despite their best intentions to pay back the full amount.’
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Parents who find they need to borrow from their children more often than during the post Christmas period, could consider consolidating their existing debts with a secured loan, stopping the need to juggle several monthly repayments. One of many options, a secured loan will wrap several monthly payments into one and can usually be repaid over a term of 5 to 25 years. Homeowners who find they are running out of room could use a secured loan to add the vital space needed for their growing family. When taking out a secured loan to consolidate existing debts, it is important to remember that repaying borrowing over a longer term will increase overall interest charges.
