The level of debt owed to UK consumers by their family members has been rising dramatically during the past few years, according to a new study.
Research by Skipton Building Society found that the amount of money owed to family members has increased by around 82 per cent over the past decade and now stands at close to £25 billion.
Debt managementproblems have become increasingly common within British households since 1997 and Skipton reports that more than half of all consumers have lent money to members of their family during the past ten years.
Jennifer Holloway, head of media relations at Skipton Building Society, said: “It’s well known that many homebuyers rely on the bank of mum and dad for help purchasing a property, but it seems getting loans from the ‘financial family’ is extending to other areas, such as for paying bills.
“This is perfectly understandable when the cost of modern living is rising all the time, but the cost of relationships that suffer as a result should also be considered.”
During the past 12 months the overall personal debt management burden in the UK has risen by around ten per cent, according to data compiled by Credit Action.