Saturday 6th of March 2010
If you are worried about your future retirement because you find yourself financially supporting your grandchildren then you may want to get some answers on individual voluntary arrangements (IVA) before the situation gets worse.
A new study by Scottish Widows reveals that almost half of mums and dads with adult children have loaned or given money to their grandchildren or kids.
But if you also have unsecured debt repayments to meet then supporting others could be taking a toll on your finances.
A third of you who lend to children and grandchildren say the money was used for their living costs and everyday expenses.
If lending money here and there has pushed your own finances into the red - meaning you also struggle to meet day-to-day costs - then you may want to consider an IVA.
An IVA can help you clear your debt repayments over approximately a five-year period. With lower repayments coming out of your coffers, you may have more spare cash to help with your own living expenses - and a little extra for family.
Iain McGowan, savings expert at Scottish Widows, says mortgages, debt and job insecurities mean "that fewer parents can afford to give or loan money, while those who can, are being asked to provide more".
By Chris King
- 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
- IVA figures released by Insolvency Service
