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Dinkys faring better than full-blown families

Although the average 'double-income-no-kids' families (Dinkys) have about £82,000 of debt, a recent survey has shown that when two children are added to the equation, mortgage, loan and credit card debt tends to exceed £100,000 - nearly a fifth of an increase.Scottish Widows' research shows that of the 7.1 million households which have dependent children, 3.5 million require two salaries just to be able to manage their finances.Fifty-one per cent of families with more than one child claim they would not be able to manage without an income from both parents. The problem, which may stem from the fact that a quarter of families do not have any savings, means that young mothers have no choice but to work.Richard Jones, Scottish Widows' spokesman, indicated that many large families relied on borrowing to help them make ends meet. "Our report reveals that the mixture of relatively low interest rates and high job security means borrowing has been an attractive option in recent years," he explained.However, Mr Jones warned: "The problem is that servicing this debt eats into our take home pay and exposes us to financial hardship should we be unable to work. Low inflation also means debts are eroded more slowly over time - again increasing the need for financial protection."This reliance on two incomes to buy and run the family home means millions of households are effectively doubling the risk of financial hardship should one of the breadwinners become unable to work."

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