Friday 4th of December 2009
If the economic downturn has meant you have had to go back to work to bring home more money to help meet your financial commitments then you now may be relying on your parents to provide free childcare.
A new survey by RIAS reveals that over six million grandparents provide free childcare on a weekly basis for their loved ones.
One in seven grandparents claim that their childcare burden has increased during the downturn, which could be because you or your partner who previously stayed at home to look after your children have now had to go back to work so that your unsecured debt commitments can be more effectively met.
But even bringing home an additional wage may not help to clear debt if rising interest repayments eat away a large portion of your income. An individual voluntary arrangement (IVA) can be useful in such a situation, but you may have a few questions regarding IVAs.
One of the biggest IVA questions is often whether your family home will be protected. If you keep up with your repayments then your property will not be repossessed, something which as a parent will be one of your biggest concerns.
Likewise, if you keep to your side of an IVA agreement then your job will not be at risk because of your financial status and your boss and colleagues need not have to know about your situation.
Clearing your debt could also take some of the pressure off your parents, as 33 per cent claim they contribute around £123 a month to help their loved ones cover the expense of their children.
"Millions of grandparents regularly step in to pick up children from school because parents are working full-time, help out when their grandchildren are ill and need to stay at home, or give parents a well-deserved break," says Janet Connor, managing director at RIAS.
By Kim Parsons
- 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
- IVAs can freeze high interest rates on loans
