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"Proliferation" of credit increasing debt worries
27 March 2008
The "proliferation" of credit in the financial markets means that parents often have to help their children out of an average £12,500 of debt, an industry expert has claimed.
Due to the tightening of credit and loan regulations by major banks as a result of the credit crunch, many parents are having to fund their children`s debt problems or allow them to go into a debt management scheme, Scottish Widows stated.
A lack of education on financial matters means that people in their mid-20s still do not know about basic financial terms, Anne Young, savings expert at Scottish Widows, said.
Ms Young added: "A lot of children now are going into their working life with a lot of debt hanging over them, probably as a result of further education and student debts. But also it`s the proliferation of credit that is available now."
A recent study by the company found that 42 per cent of adult children used their parental handouts to pay off debt.
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