44 percent rely on more than one breadwinner
According to Scottish Widows, the level of debt amongst parents with dependent children is significantly rising.As such, 60 percent of the 6.6 million UK households with dependent children rely upon two or more salaries to get by.On the whole, it was found that 44 percent of UK households rely upon more than one breadwinner in order to ‘maintain a comfortable standard of living’.
Scottish Widows’ protection director, Clive Allison, commented: “The days of one parent going out to work while the other takes care of the family is just not an option for many people. Nearly half of families with dependent children now rely on two incomes to maintain a decent standard of living, and as our stats show, this isn’t likely to ease off any time soon. For many families, sacrificing half their income when they have children is a luxury they just can’t afford.”
In terms of mortgage debt, it has been revealed that this stands at £91,648 for the average household with dependent children. This figure reportedly stood at £88,500 in 2009. In contrast, findings show that those without children do not have as much mortgage debt, with an average sum of £73,293 – which fell from £77,500 last year.
With regard to short term debt over the past three months, it was found that the average household with dependent children has carried in excess of £8,653. In contrast, research has shown that the average household without dependent children has carried £7,003 during the past three months.
Commenting further, Clive Allison said: “The increase of debt for those with dependent children is worrying. People are leaving themselves exposed to a lack of income should anything happen to the main breadwinner, and large personal debt to repay on top of this could make things even more difficult. Families need to make sure they protect themselves financially so if they do get into difficulties they have the vital back up in place to look after their families and loved ones. If households do not have sufficient protection, such as life cover and critical illness cover for any of these circumstances, many could be left struggling.”
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Homeowners who are juggling multiple debt repayments each month could consider tying these commitments up into one place. One of many finance options available, a secured loan for debt consolidation could allow borrowers to reduce several monthly repayments down to just one. Furthermore, this single monthly repayment could even be lower than existing 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.
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