Parents helping out kids with debts

One in ten parents has helped pay their children’s mortgage bill at some point over the past three years, new figures from CreditExpert.com show, indicating just how bad the situation has got for some borrowers. The burden of debt has simply got too much for some borrowers, the financial website has reported, with costs such as student loans as well as unpaid phone and card bills all taking their toll.

In fact, almost a quarter of parents have helped their children out with credit card payments since 2004, the study found, saving their offspring from having to deal with a bad credit score in the process. “With the cost of living so high at the moment and with so many people living a buy-now-pay-later lifestyle, parents are often forced to help out their children financially in later life,” confirmed MoneyExpert.com chief executive Sean Gardner.

“Whether it s an overdue credit card bill, an unauthorised overdraft or even a missed mortgage repayment, millions of parents are forking out on behalf of their children,” Mr Gardner added. The problem could get worse too, with Datamonitor recently predicting that over eight million Britons are set to be deemed credit problems, and obliged to get a mortgage with bad credit, by 2011. Have you been refused a loan? We can help.

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