Young people look for personal loan help

Thu, 02 Oct 2008

Young people are increasingly looking to their parents to help them secure a personal loan, it has been claimed.

According to research by price comparison website Moneysupermarket.com, 23 per cent of those in their 20s have asked mum and dad to be a guarantor when applying for a personal loan .

Tim Moss, head of loans at the firm, said: "More and more parents are being asked to act as guarantors on a range of credit applications, including loans and mortgages ."

Stricter lending criteria means it is harder for people to gain access to personal loans and other forms of credit, he added.

Young people are more vulnerable in this situation as it is likely they have missed payments on credit cards, Mr Moss stated.

Recently, a study by Fairinvesment.co.uk found that average personal loan, store and credit card debt has increased despite the economic downturn.

According to the body, the figure rose by 30 per cent between August 2007 and 2008.
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