The Chelsea warns of end to family loans

29/08/2008

Many Britons are finding it much more difficult to loan money to family members in need - due to the current economic conditions.

As high street credit has become harder to secure and prices continue to rise, around 30 per cent of people are struggling in this way, new research suggests.

According to the Chelsea building society, many families are instead extending more "traditional" methods of support.

Of the group of people who felt unable to loan cash to their struggling relatives, 54 per cent said that they were planning to offer them accommodation for free, while 51 per cent were looking to help with their childcare so that they could go out to work.

Commenting, Darren Stevens at the Chelsea said: "Whereas previously Britons could rely on their family members to bail them out when they got into difficulty, now when they turn to their families as a last resort they might find that their families are also suffering the pinch.

"A lack of extra funds means that families have to help each other out in non-financial ways."

He added: "Britons should start taking control of their own finances through proper financial planning and saving, bypassing a potentially embarrassing situation within their own families."

Tags; Income Worries and Debt, Young Family Finances,

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