Monday 8th of March 2010
Young Britons have picked up the bad financial habits of their parents, a new report shows, although the damage could be limited with the adoption of an individual voluntary arrangement (IVA).
According to an exclusive Post Office survey for the Mirror, a quarter of youngsters blame their mums and dads for the fact they overspend themselves.
If you are worried about the impact your high level of unsecured debt has on the attitude your kids take towards money, then getting some answers on IVAs could show them you want to take a sensible approach.
By undertaking an IVA, you are promising your lenders that you will repay your debt every month at a lower interest rate.
And while it takes around five years to pay back what you owe, the short-term struggle could result in your household finances being secured for the long term, something your children may look up to and take on board.
The Post Office survey reveals that some of you are also turning to your offspring for advice about money matters.
Almost half of mums and dads ask their children for day-to-day advice, with kids often more aware about things such as price comparison websites.
Speaking to the newspaper, Paula Muir says her 19-year-old son Dominic has helped her look after her cash.
"Being a busy mum I used to just let things slide. I’d renew insurances without a second thought. But when my car insurance quote dropped on the mat recently Dominic showed me how to use comparison websites and helped me chop my bill by £250," she explains.
As well as making savings on other financial commitments, repaying debt through an IVA could help reassure your children that you are in control of your money and that if you do get into debt, you have to get yourself out of it.
By Rachel Powell
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Lenders growing cautious, expert notes
