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Secured loans 'prompting need for two incomes’

Secured loans 'prompting need for two incomes’

Category: Loans

Updated: 25/06/2009
First Published: 27/11/2008

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 It is now over 6 months old so the content may be out of date.

Research has found that families are being forced to rely on more than one income due to debts and the rising cost of living.

The average household with dependent children carried £9,359 in secured and unsecured loans over the last three months, Scottish Widows has found.

And that is in addition to the £88,500 outstanding on mortgages.

In order to maintain a comfortable standing of living nearly half of households are relying on more than one income, with 61 per cent of families with children needing at least two breadwinners.

Richard Jones, protection market director at Scottish Widows, remarked: "For many households, living with debt has become an acceptable situation. While the country was enjoying economic boom this was sustainable but now everyone has to tighten their belts more than ever."

Fool.co.uk. this week advised consumers to use the 2.5 per cent cut in value added tax to help repay secured loans.

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