New parents carry baby debt burden
03 October 2007
New mums and dads run up around £1,140 debt in the first year of their child's life, research by MoneyExpert has shown.
Loss of income through giving up a job to care for a child, as well as the cost of bringing up a baby can mean that parents experience sleepless nights due to money worries, not just because their baby's crying.
What's more, around seven per cent of parents say that they have accumulated over £2,500 worth of debts in their child's first year.
Sean Gardner, chief executive of MoneyExpert.com, said: "For most of us worries about money go out of the window with the joy of having a baby. It's hard enough coping with the sleepless nights and new responsibilities without thinking about budgets.
"But financially a new baby can cause havoc because of the combined burden of extra costs and reduced income.
"If money is already tight, it's no wonder that so many families have had to turn to borrowing to make ends meet. There are obviously increased costs so debt is often a sensible way to tide you over.
"However the most important thing under those circumstances is that you choose the most appropriate form of borrowing for you."
Some ten per cent of people take out a loan to cover their mounting baby burden.
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