Keeping Debt in the Family
There is a new bank which helps to keep debt in the family. It is popping up in households up and down the country and is called the Mum and Dad bank.
Personal debt in Britain has accumulated to the sum of £4,000 per person but not all of this debt has accrued from personal loans and credit cards…
People are borrowing more than ever but nearly 40% of the nation owes money to friends and family. Instead of facing debt problems head on and opting for a practical debt solution, like an IVA or debt management plan, people are falling back on family and friends.
A Family Affair: Causing feuds and transferring debts or just helping out a loved one?
Whilst this is a cheaper way of lending, it often comes with no fixed payment period which means that friends and family may need their money back at a moment’s notice. Others say that borrowing from family and friends has caused family feuds by transferring your debt to them.
Mum and Dad are often a soft touch when it comes to saving their children from debt, which is commonly accrued from banks and loans. Often, they are prepared to kiss their money goodbye and risk falling into debt themselves when children take advantage of their generous nature.
Children know that their parents are unable to pile on the legal pressure involved with reclaiming outstanding debt. As a result, they often ignore the pleas from Mum and Dad for repayment. However, demands from a legitimate lender could not be treated so leniently and would have to be repaid on time.
If young people are experiencing financial difficulties, they should seek debt advice immediately, rather than turning to Mum or Dad who may be forced to run into debt out of kindness.
Personal debt in Britain has accumulated to the sum of £4,000 per person but not all of this debt has accrued from personal loans and credit cards…
People are borrowing more than ever but nearly 40% of the nation owes money to friends and family. Instead of facing debt problems head on and opting for a practical debt solution, like an IVA or debt management plan, people are falling back on family and friends.
A Family Affair: Causing feuds and transferring debts or just helping out a loved one?
Whilst this is a cheaper way of lending, it often comes with no fixed payment period which means that friends and family may need their money back at a moment’s notice. Others say that borrowing from family and friends has caused family feuds by transferring your debt to them.
Mum and Dad are often a soft touch when it comes to saving their children from debt, which is commonly accrued from banks and loans. Often, they are prepared to kiss their money goodbye and risk falling into debt themselves when children take advantage of their generous nature.
Children know that their parents are unable to pile on the legal pressure involved with reclaiming outstanding debt. As a result, they often ignore the pleas from Mum and Dad for repayment. However, demands from a legitimate lender could not be treated so leniently and would have to be repaid on time.
If young people are experiencing financial difficulties, they should seek debt advice immediately, rather than turning to Mum or Dad who may be forced to run into debt out of kindness.
posted by teatreebergamot at 7/16/2007 02:58:00 PM
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