You are here: Home - Saving & Banking - News -

Mum and dad short-changed by cash-strapped kids

0
Written by:
23/01/2007

January is the cruellest financial month, breeding lots of temporarily broke people eagerly awaiting the first pay day of the New Year and borrowing money from their parents to tide them over.

This is not the time to compare credit cards, but rather to make ends meet by tapping mum and dad for a few pounds. Indeed, a recent survey by Money Shop found that 58% of people borrowed from their parents in the last year, with £275 being the average amount borrowed, rather than go too deeply into the red on their UK current accounts.

About 23% ask for financial help to not go over the overdraft limit on their UK current accounts, although only 41% pay back the full amount, leading to 7% of the borrowers having a family argument about paying the money back.

Money Shop’s managing director, Paul Mildenstein, said: “Coming towards the end of the month when money is short can be difficult, especially when something crops up that you need money for. January is the worst month of all, as many people were paid before Christmas and won’t get paid again until February.”

He continued: “People have two choices – go over their authorised overdraft limit on their UK current accounts and face charges, or borrow from the Bank of Mum and Dad, with all the problems that entails.”

As a third way, Money Shop has launched a Cash ’til Payday scheme, whereby consumers can borrow up to £250 at a cheaper rate than going over the overdraft limit on their UK current accounts.

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Debt inflicting heavy casualties on women

A report published by the Consumer Credit Counselling Service (CCCS) has revealed that many women advised to declare themselves bankrupt...

Close