Wednesday, December 30, 2009
Category:
Consolidation
According to Engage Mutual, a survey of 3,000 parents has revealed that in excess of one in five have been borrowing from their children’s savings accounts.
It was found that 44 percent have borrowed between £200 and £500, with the majority of parents repaying the money over a period of five months or less.
Findings also showed that British families view the recession as the cause of the poor state of their finances, and some have had to rely on their children’s savings to get by. However, 82 percent have reportedly borrowed the money as a loan and have every intention of paying it back as soon as they have more money to hand. Reasons for such loans include unexpected car repairs, house repairs and other bills, whilst 8 percent of parents admit that their Christmas would not be particularly merry if it wasn’t for their children’s savings accounts.
The survey also uncovered that 60 percent of respondents have borrowed between £200 and £5,000 from their children’s savings accounts. Of these parents, 40 percent did so in order to pay the bills, and a fifth did so as a means to paying for car repairs. Furthermore, the money was reportedly used to fund a family holiday in 14 percent of cases, and to finance house repairs in 12 percent of cases.
The survey showed that 13 percent of parents are not aware of where else they can access money quickly, and virtually two thirds of parents only borrow money from their children’s savings accounts when they have no other option. Nevertheless, 30 percent of parents feel ‘incredibly guilty’ for doing this, and 60 percent are said to be ‘worried about their child’s financial future’.
……………………………………………………………………………………………….......
Homeowners who are finding their finances tight at the moment, perhaps due to expensive credit card repayments each month, could consider taking out a secured loan to
consolidate debt. One of many finance options available, a secured loan for debt consolidation could relieve borrowers of multiple monthly repayments – leaving them with just one repayment each month. This single monthly repayment could even be lower than the sum of current outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
