Financial advice survey shows 'importance of family'

23/09/2008

Britons are turning to family members in order to share their money worries, a new financial advice poll has shown.

The Norwich and Peterborough Building Society (N&P) found that 21 per cent of people would sound out their families for assistance, if they were faced with debt worries.

However, 59 per cent said that they would consider contacting an Independent Financial Advisor (IFA).

Fears over finance were also found to be growing, as the credit crunch continues and inflation hits a 16-year high of 4.7 per cent.

According to N&P, 57 per cent of people are thinking about their personal finances "more often" than they did a year ago, when the current financial crisis was just beginning.

Kevin Still, director of EuroDebt, commented: "Financial and moral support from family and friends can be very important when your circumstances change and you are in financial difficulty, but this can lead to a reliance on their cash to make ends meet every month.

"We often see people being chased for payments by unsecured creditors and family offering free loans with indefinite repayment periods to alleviate the pressure being exerted where they are being asked for lump sums that they cannot afford. In the current economic climate, most cashflow difficulties are not short-term and we would recommend taking professional advice when this becomes apparent."

Judith Dove, N&P's head of sales for its Financial Advice Service, added: "Everyone should be checking that their life protection needs, pension arrangement, investments and wills are up to date and in the best possible place."

Tags; Debt Management and Banking, Young Family Finances, Recent Graduate Debt,

Regional Debt Advice; Debt Advice Norwich, Debt Advice Peterborough,

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