Debt ridden parents raiding children’s savings

A recent report has suggested that many parents in the UK who are bogged down with debt and struggling to make ends meet financially are now having to delve into the savings that they had put aside for their children’s education in order to be able to afford bill payments and essential living costs.

With the cost of living having soared to such a high level and with wages having been frozen for so many people, many households are now finding it increasingly difficult to cope with their financial obligations. The recent energy hikes will have simply tipped many households over the financial edge, which has resulted in many now having to raid money that they had put aside for the future of their children to try and make ends meet.

According to the results of a recent study around 2.7 million people have now been forced to take money from an account that had been created to put money aside for their kids’ education. Around a third of the value of these funds is said to have been withdrawn on average. It has also been revealed that around 1.3 million households are now worse off than they were nine months ago due to soaring bills.

It was also revealed that many people whose kids were in private education or planning to go into private education had been affected by financial issues and had been forced to make some difficult decisions with regards to their kids’ education.

One official said: “The rising cost of living is placing a major strain on household finances. Many of those who are already paying for private education are facing some tough decisions over the summer. Some have decided to reduce the amount spent, while others have had to withdraw children from private education. Our research shows that many people have been unable to save adequately for private education and of those who have, other financial necessities have forced many to raid their educational funds.”

Tags: difficult decisions, Personal finance, private education, financial necessities, tough decisions, debt, financial issues

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Students face bleak debt ridden futures

As many people know from personal experience, being a student these days can be a costly affair, with many of those that are keen to get a further education to improve their job prospects having to put themselves in huge amounts of debt for the privilege. Whilst in years gone by students could justify getting into this amount of debt because of the improved job prospects that their advanced education would give them the students of today are having to face a double whammy of getting into a lot of debt and still having bleak prospects when it comes to jobs.

Research that was published recently indicated that many graduates face a bleak future, bogged down with a load of debt that they have had to take on to get their further education and affected by bleak job prospects despite having an advanced education. The data showed that it now takes an average eleven years for students to clear their debts after leaving university. On top of this, nearly 40 percent of students have been forced to put their lives on hold as a result of these high debt levels.

The research was carried out by uswitch.com with the results showing that close to 60 percent of students had been unable to save money because of their debts and nearly 50 percent had been forced to put off buying a home, further pushing up the average age of the first time buyer in today’s market. Over 30 percent had been unable to start a pension when they wanted to and nearly 30 percent had delayed plans for marriage.

One personal finance expert said: “The fact that graduates have to put their life on hold because they are knee deep in student debt is a sorry state of affairs. And as fees go up, students risk running up even bigger debts. But without a degree, getting a job in today’s stagnant market may be even harder.”

Tags: jobs, Student, Financial Services, s market, high debt levels, education, research, first time buyer

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