Paying off debt 'key' to financial independence - Loans - News - Moneyfacts


Paying off debt 'key' to financial independence

Paying off debt 'key' to financial independence

Category: Loans

Updated: 26/02/2009
First Published: 26/02/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Paying off debts such as unsecured loans is one of the key ways that young adults believe they can become financially secure, it has been found.

Research by The Children's Mutual revealed this to be a major factor in becoming independent, topped only by buying a home and increasing earnings.

However, the study showed that many 18 to 25-year-olds who consider themselves to be financially independent are continuing to receive support from parents.

Almost two-thirds who describe themselves as 'completely' independent get at least some help, while 41 per cent of young Britons have everyday living costs funded by their parents.

Chief executive of The Children's Mutual David White noted that many people are taking on more debt as a result of having to provide help.

"There has been a major change in the dynamic of family finances and it needs to be dealt with now as the problem could be growing for anyone who has, or is planning to have, children," he added.

It comes as a Scottish Widows poll reveals that 56 per cent of parents have handed out large sums of money to support children over the age of 16.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.