Sibling loans worth billions
Surprisingly large numbers of British parents are using loans provided by their adult children to meet their credit commitments and keep their heads above financial water.
According to a new report, more than ten billion pounds has gone back and forth between parents and their children over the last 6 years, with debt consolidation or debt repayment comprising of the most popular need for the borrowings.
However, what may come as less of a surprise is that the collective total of money lent by UK adults to their parents pales into insignificance when faired against the amount which is supplied by parents to their children, throughout the duration of their lifetimes.
Studies show that British parents will spend approximately £180,000 to raise each of their children up until the age of 21. This figure encompasses the amount needed to keep a child fed, clothed and with a roof over their head as well as providing occasional treats, it does not however, include any contributions towards home loan deposits, cars or holidays (which are also becoming very common).
One expert commented that although parents do not expect handouts from their children, when times become desperate, they are often the first port of call (providing that they can afford to help). It is also very rare for children to reject a financial request from their parents for the simple reason that most people will feel as if it is the least that they can do.
