British parents accumulate an average of £1,140 in debt during the 12 months immediately after the birth of their first child, a new study has discovered.
Debt management problems add to the difficulties of being a new parent and many people now borrow thousands of pounds to fund their first year of parenthood, according to figures from MoneyExpert.
The financial comparison firm reports that ten per cent of new parents in the UK opt for a personal loan to cover their loss of earnings, while 22 per cent agree to take on credit card debt for the same reason.
Sean Gardner, MoneyExpert’s chief executive, said: “If money is already tight, it’s no wonder that so many families have had to turn to borrowing to make ends meet. There are obviously increased costs so debt is often a sensible way to tide you over.
“However, the most important thing under those circumstances is that you choose the most appropriate form of borrowing for you.”
Figures from Credit Action show that more than £215 billion worth of consumer debt was taken on in the UK during August of this year alone.