Parents ''fuelling UK debt problem''

By MoneyhighStreet Staff. Published on September 27, 2008 This post currently has no comments.

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Predictions that more and more consumers could seek out help with debt relief this year are set to be further fuelled by a survey showing that parents are taking on increasing levels of debt to ensure their children do not miss out on opportunities.

According to a poll of UK parents conducted by National Savings & Investments (NS&I), 29 per cent have tapped into their overdraft facility for this purpose, while a further 27 per cent have taken out a loan or added to their credit card debt.

The principal reason given for the extra borrowing was to be able to afford to pay for opportunities for children, with these ranging from extra tuition, sports lessons and cultural trips.

Tim Mack, senior savings spokesperson at NS&I, said: "Parents and families need to plan their household finances carefully, trying not to dip into their overdrafts or go into debt, but instead thinking about which outgoings are essential.

"This should help parents resist children''s demands for things that are just nice to have."

News of the survey''s findings comes after official figures from the Insolvency Service showed that 80,000 Britons took out an individual voluntary arrangement (IVA) in the first half of this year.