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While the Bank of England has faced the dilemma of how much funding assistance to give to the UK markets without allowing backs to benefit directly, this situation is now being replicated in Europe...
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Thursday 4th October 2007
Many parents are finding themselves unable to cope with the costs of having a family and are getting into debt as a result.
According to a survey conducted by Money Expert, as many as four in ten parents end up in the red before their baby reaches its first birthday, as all the costs of having a child add up and parents have to cope with a decrease in income.
While the average parent ends £1,140 into the red in the year after they have a baby, seven per cent end up owing £2,500 after the first year and two per cent find themselves owing more than £7,000.
Around 39 per cent of those parents polled experienced a drop in income after having their child, with one partner giving up work or reducing their hours to care for the new baby.
When it came to bridging the financial gap, three in ten people turned to their family for a handout, while 22 per cent were forced to use a credit card and ten per cent took out a loan.
Sean Gardner, chief executive of Money Expert, said: "For most of us worries about money go out of the window with the joy of having a baby.
"It's hard enough coping with the sleepless nights and new responsibilities without thinking about budgets.
"But financially a new baby can cause havoc because of the combined burden of extra costs and reduced income.
"If money is already tight, it's no wonder that so many families have had to turn to borrowing to make ends meet."
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