Families 'flirting with debt' due to childrens' money demands

21/08/2008

Parents are putting themselves in financial danger by loaning too much to their children, Addidi Wealth suggested today.

According to the firm, "the Bank of Mum and Dad" has led to many people becoming complacent in sponging off their families.

The comments follow the release of research from savings firm Skandia, which found that 40 per cent of parents see it as "my responsibility" to help their children out with their debts.

Anna Sofat, director of Addidi Wealth, said: "Anything over and above a decent education should be seen as a bonus, not a life['s] necessity.

"If children are brought up to expect that they can always fall back on their parents, then where is the incentive for them to make something of themselves?"

Kevin Still, EuroDebt director, added: "Whilst education on personal budgeting is important, I also think this research highlights a much deeper problem in that many households with young families simply cannot afford to balance the books every month without additional financial support and your parents are undoubtedly the cheapest form of borrowing.

"It is not unusual to find a client joining a Debt Management Plan that has been surviving for months, if not years, on meaningful contributions from family and friends with their credit file showing no serious arrears."

Tags; Budgeting Advice, Credit Card Lifestyle,

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