Parents ‘are relied on to help with debt’

The credit crunch means more people are turning to their parents for debt help, it has been claimed.

Research from moneysupermarket.com has found that when applying for a loan or mortgage, 23 per cent of those in their 20s have used their parents as guarantors.

Head of loans Tim Moss commented: “Not only can your offspring eat you out of house and home, but they’re increasingly leaning on parents financially too.”

He added that younger people are “especially vulnerable” in the current economic situation as they are more likely not to be homeowners or to have missed payments on credit cards or mobile phone bills – which would have an impact on their credit ratings.

Meanwhile, a recent study from Scottish Widows found that 49 per cent of people of a working age were not able to save adequately for their retirement.

“It’s a shame that some people need to spend their hard earned savings on paying off a mortgage or clearing debts,” remarked spokesman Ian Naismith.

By Jamie Price