Family loans 'bite the dust'

By Sarah Engle, Fri 29 Aug 2008 - Published in Loans

The credit crunch is making family loans a thing of the past, according to a new survey.

Research carried out by Chelsea Building Society found although 59 per cent of people are willing to help their family out financially, almost 30 per cent are unable to do so as a result of rising living costs.

However, to make up for this families are supporting each other in different ways.

Some 54 per cent of those questioned were providing accommodation free of charge to a family member and 51 per cent were offering childcare services for nothing.

Commenting on the findings, Darren Stevens, director of customer services at Chelsea Building Society, said: "Whereas previously Britons could rely on their family members to bail them out when they got into difficulty, now … they might find that their families are also suffering the pinch."

He added people should start taking control of their own financial situation.

In other news, research by online bank cahoot has found the credit crunch has made couples more reluctant to split up.

News Categories

News Archive

News: Family loans 'bite the dust'