Parents Getting Into Debt To Provide For Children

Fri, 26 Sep 2008

A considerable number of parents are being forced to take out loans in order to provide for their children, new research has revealed.

A report by National Savings and Investments (NS&I) found that almost one-third of parents in the UK are increasing their overdrafts to ensure their children do not miss out.

The study also found that a further 27 per cent are taking on high levels of debt by taking out a loan or using their credit cards to provide for their families.

Tim Mack, senior savings spokesperson from NS&I, said: "It is only natural that British parents should want to put their children first and make sure that they have the best opportunities available, but this is having a significant impact on their wallets."

"Parents ought to budget more effectively and decide which outgoings are essential to prevent them from having to take on more debts", he added.

David Kuo, head of personal finance at website Fool.co.uk, recently advised loan seekers against taking out secured loans to ensure their home is not at risk.
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