Baby costs driving debt fears?

The cost of having a baby may be contributing to debt fears for expectant parents in the UK.

This is because new research carried out by Sainsbury&…

The cost of having a baby may be contributing to debt fears for expectant parents in the UK.

This is because new research carried out by Sainsbury’s Finance Personal Loans has found mothers and fathers-to-be require an average of £2,980 to fund purchases needed for the new arrival.

Such expense includes items such as a buggy, a car seat, clothes and toys, as well as essentials such as products needed to decorate and furnish a nursery.

The study discovered 6.1 million adults in Britain over the last five years have planned or are currently gearing up for the introduction of an infant – and are paying for the costs incurred by using their savings, using credit cards and personal loans and borrowing from family and friends.

Despite the average financial requirement being £2,980, the investigation discovered around 643,000 parents and expectant mums and dads will borrow additional cash in order to make larger purchases.

This includes items such as a new car or home improvements at a value of around £5,010.

The survey revealed adults expecting the arrival of an infant have taken out loans worth an estimated £2.32 billion in order to fund purchases related to the birth.

Steven Bailie, head of loans at Sainsbury’s Finance, said: “Preparing for a new arrival can be expensive when you take into consideration costs such as buying the necessary equipment, upgrading the family car or maybe even extending your property.”

Recent research from the Post Office found many people in the UK are turning to their friends in search of financial support, as more than £7 billion has been borrowed by individuals from their mates.

By Joe White

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