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Paying off debt 'key' to financial independence

Paying off debt 'key' to financial independence

Category: Loans

Updated: 17/11/2017
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 It is now over 6 months old so the content may be out of date.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.

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