Debt Help from Grandparents
In the times of credit crunch, many fear that their credit card or loan application will be rejected. This could be why Grandparents are offering cash to both their children and grandchildren in order to help make ends meet.
According to research by Engage Mutual, 57% of Grandparents have given out money to their loved ones. 35% of these loans were to help out with debt repayments. In the past six months, the average amount that grandparents are spending on their family stands at £1,800.
People in the North East of England are most likely to rely on hand-outs from their grandparents as three quarters (74%) are receiving some form financial support, such as to debt help with debt management issues.
Karl Elliott, spokesperson for Engage Mutual, said: “With rising living costs and debt repayments taking effect, the findings show that the majority of grandparents in Great Britain have had to help their families… With costs of living increasing and tougher times ahead it is important that people think ahead and save little and often in order to reduce the pressure to make ends meet.”
