New research has found that unsecured debt problems are affecting children with 2.4 million children living in a household with a debt problem. The research also found that a further 2.9 million households were on the breadline and close to struggling to meet the monthly outgoing payments.
Many families tell Debt Support Trust that they would be OK if they didn’t have to manage their contractual obligations to their debts. Most families have to pay hundreds of pounds to their creditors every month just to meet the minimum repayment on their credit cards, loans and overdrafts.
The survey by The Children’s Society of 2,000 households where there is at least one dependent child found the average unsecured debt was £3,437, with one in five households in debt. However, debt solutions are available which can help.
Problems for Children with Debt
Children have commented that their family finances make their embarrassed and some children have experienced bullying as a result of the lack of money their family has.
The study shows that children are impacted by both the financial issues which arise from being part of a poor family and the societal stigma of being in debt. However, 49% of children did say their parent’s financial situation didn’t make them feel embarrassed.
Solutions to Resolve Debts
There are solutions which can resolve debt problems. Most people who are in employment will be able to contribute towards their debts each month, however the minimum payments have become too large and this is where the problem occurs. The minimum payment to debts may have been manageable once, but the costs of living, reduced income or consistent borrowing has made it impossible to make ends meet.
The options are
- Continue to struggle: Many people continue to pay the debts because they don’t want to admit there is a problem. This is not generally recommended as it will delay the date when you are finally debt free.
- Ask Friends/ Family: You could ask friends and family to see if they could help you with advice or money to repay the debts
- Call Debt Support Trust: You can call our charity on 0800 085 0226 or complete a debt analyser for confidential help.
There are lots of different debt solutions which could help a person become debt free. It’s about understanding each option – the pros and cons – and making a decision based on what you think is the best for you. Speaking to Debt Support Trust is one way to get the advice you need and discuss the options.