Loan News Parents Paying Off Children’s Debts
20 September 2007
Some 40 per cent of parents have had to help their children out with the repayment of debts, according to the latest research.
MoneyExpert has revealed that a total of £2,540 was spent on average by parents chipping in to help their children with the repayment of bills and borrowing, according to the research.
Mobile phone bills, car finance, credit card bills and overdrafts involved the contributions of at least one in five of those surveyed, with nine per cent helping out with mortgage repayments.
“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,” said Sean Gardner, chief executive of MoneyExpert.
In total, some 7.5 million parents have helped their children out financially in this way, according to the research.
Alliance & Leicester revealed last month that one in three parents said that they would feel guilty if they were unable to help their children on to the property ladder.
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