News

Parents 'giving loans to their kids'

Parents 'giving loans to their kids'

• Click here to see how we can find you a loan
• Use our Loan calculator

 

A number of Britons have been giving loans to their children as a result of the high level of debt the young people have accrued, according to one expert.

Anne Young of Scottish Widows explained that parents give an average of £12,500 to their offspring, although she acknowledged that "a substantial amount of parents are giving much more than that".

Loans related to further education are a main reason that young people have so much debt, she said.

However, Ms Young stated that "the proliferation of credit that is available now" has exacerbated the situation, so that the younger generation does not always understand how to manage their finances.

She concluded that although the current economic situation may lead to tighter criteria for credit, "people are still going to have problems with debt going into the future".

Research conducted by Scottish Widows has found 42 per cent of adult children who received money from their parents used it to pay off debts.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The news articles on our website are produced by Adfero Ltd and do not in any way represent the thoughts and opinions of anyone associated with mdnationwide limited. They are purely here for the reader to obtain the latest news and breaking news from the world of finance.