Will our children ever be able to move out and set up on their own?
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Just when mum and dad thought it was time to kick their shoes of and loosen up a bit, it turns out it is not quite so simple.
Long gone are the days when youngsters would leave school, go to university, get jobs and make their own way in their own little pads. Not these days and it’s throwing a lot of parents into a quandary.
Financially it is really not something that they have prepared for. The notion was that once their precious little darlings had left home, that would be it. But no, not only are they having to help them out financially they also have to offer them a roof over their heads.
According to a recent article it works out to an extra £30,000 extra required that had not been budgeted for. This is due to young adults in the 18-30 age group being financially unable to make it on their own.
The danger is, these days almost everybody who wants to buy their first home is going to need a bit of additional funding from someplace – and it’s usually dad and mum.
With the UK increasingly taking on more debt young people won’t stand much of a chance. Their mum and dad, in an attempt to delay the commencement of debt for their youngsters will increase pressure on themselves by helping them. As a lot are leaving home at a later age the old disgrace of living with parents in your 30s no longer exists.
It is actually a terrible system. Older people have to get into further debt and things are just downright too expensive for young people only just starting out.
This results in a never ending succession of debt and more debt. So a lot now have to remortgage the house or get debt management consolidation loans to free up some cash.
Not everybody has the luxury of mum and dad to bail them out. What of them? Well the fun is taken out of life and it will become a burden. They have to grow up so quickly these days and things like debt management plans are part of their daily vocabulary.
Those who have got into debt before they have got on the first rung of the property ladder have to take care. If you’ve entered into an IVA or Scottish Trust Deed then its more than likely that you will be turned down by the banks for that precious first time mortgage.
So you’re in debt and you can not get a mortgage. Life sucks. What do you do? Well – rent somewhere for a time, work your socks off and sort those debts out. Get a good Debt Management plan that will give you a timetable of what you must pay and when, plus the light at the end of the tunnel which shows you will be debt free within a certain time period.
If your credit card debt is out of hand then by means of Debt Management Consolidation it is possible to deal with things more efficiently by transferring them into one single handy debt. You will have only one repayment going out each month instead of several which means you will not forget to pay each month and amass much more interest as a result.
The next step up if you certainly have lost the plot is a Scottish Trust Deed or IVA. This will see you out of debt after 3-5 years but you have to really be top notch at managing yourself.
Whichever course you have to take the bottom line is, the less debt you have the more possibility you have of keeping your head firmly above water.