Over half (54%) of UK adults aged 25-44 depend on borrowing money from their parents, according to a new study from 118 118 Money.
The research from the financial services provider found that 70% of UK adults in this age group have never sought advice on managing their debts, despite having borrowed an average of £3032.97 from their parents.
With 41% of adults aged 25-44 needing the money to help pay off their financial commitments, it comes as no shock that so many turn to the bank of mum and dad for help.
A closer look at their debt issues showed that one in four (25%) people in this age group have between two to five years worth of non-mortgage related debt, with the inability to pay back their credit card bills highlighted as a specific worry for over a quarter (28%).
Another of this age group’s concerns is their ability to afford mortgage repayments, with one in five (22%) saying this worries them. However, this figure is unsurprising, with over half (53%) of this age group saying the majority of their income is spent on rent or mortgage payments.
“The rate that people are borrowing money compared to previous years is alarming,” says Chris Gillespie, CEO of 118 118 Money. “As with any increase in borrowing it’s important to look at the reasons and start tackling the financial gaps that people are facing. The only way to break this spiral of debt is to help those affected budget so they can save for their own futures.”
“Saving small amounts may seem fruitless at first, but the pennies will soon add up to pounds,” continues Chris Gillespie, CEO of 118 118 Money. “What’s as important though is that a saving culture started young can last a lifetime. The doors to the bank of mum and dad may still be open, but limited usage will ensure a healthier financial future for both parents and children.”