Starting a family causes 10% of serious debts
Whilst unemployment, illness and divorce remain the largest factors for debt, research by debt forum IVA.co.uk has revealed a surprisingly large number of people citing starting a family as another major factor.
The survey was conducted amongst members of IVA.co.uk, with debts ranging from £1,000 upwards, and 45% of whom had over £30,000 of debt. 10 percent of respondents said the costs of having children pushed them into debt.
One third of those surveyed admitted to being 'very worried' and said that they 'think about their debts every day'. However, all of those who entered bankruptcy found it a final solution to their debts, and 97 percent of those who had entered an IVA believe 'it is working'.
The source of our debts
11 percent said the cause of their debts was unemployment, business failure or reduced income, while 12.5 percent cited divorce as the major factor in their debts, with 2 percent of respondents saying their ex-partner has taken out a credit card without their knowledge.
An alarming number stated that easy credit when a student had led to a build up of debt – 8.6 percent said this was the reason for their debts.
The surprise statistics
He also expressed concerns over the lack of information about the financial strain of starting a family, saying it was a side "rarely discussed in parenting magazines."
He continued; "Perhaps Mumsnet and other similar forums should spend more time focusing on the hard financial realities of giving up work to have a child (or alternatively paying for childcare), rather than the softer side of starting a family?"