Indebted young adults place extra strain on parents

Many young adults are placing extra strain on their parents as they rely on them financially, a new study has shown.

The LV= research has shown parents regularly help out their grown-up children with money for everyday costs, paying an average of £2,103 a year.

A total of 4.4 million people over the age of 21 are receiving such help from the bank of mum and dad, with additional funds going towards the cost of big ticket items, from mortgage deposits to white goods.

The survey found that high levels of debt are preventing one in ten adult children from being able to move out of the parental home.

Summing up the situation, head of protection at LV= Mark Jones said: "Young people are leaving university with large debts, youth unemployment is high and property is unaffordable for many."

A recent poll by AIC found a fifth of parents believe it will take their children as long as 20 years to pay off their graduate debts.

By James Francis