Cash-strapped families unable to assist relatives

By MoneyhighStreet Staff. Published on August 29, 2008 This post currently has no comments.

Money
Rising living costs mean that fewer and fewer Britons are able to help out family members with debt problems, it has been discovered.

Research conducted by the Chelsea Building Society suggests that family members can no longer provide a safety net to their kin due to the fact that their own finances are under strain.

The study found that while 59 per cent of people are willing to help their families - almost 30 per cent said they are unable to do so because their own situation has been heavily impacted by soaring energy and food bills.

Darren Stevens, director of customer services at Chelsea Building Society, 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."

It is thought that the skyrocketing cost of living coupled with higher mortgage repayments could drive a surge in demand for debt consolidation loans this year as consumers attempt to gain greater control over their outgoings.