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Bank Of Mum And Dad Calls In Debts

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Oh dear! Looks like there's been a run on the Bank of Mum and Dad! I wonder if Santander will swoop in and save the day? ;)

One in 10 grown up children gave or lent typically £8,250 to their parents last year. It compares with the same number giving £6,500 in 2008.

The sharp increase is being blamed on the recession as parents face a tightening squeeze on their own finances.

It comes after a generation of children has sought financial help from their parents for help with university costs, stepping on the property ladder and the fallout of unemployment.

More than a third of parents said they used the money to pay off their own debts, while a similar amount used the money towards their everyday living costs – a sharp jump from the 14 per cent in 2008.

Iain McGowan, savings expert at Scottish Widows comments: “Parents are feeling the pinch, and so the Bank of Mum and Dad has decided to call in its debts and sap more money than ever from their children.

“In many cases, these parents leant money to their children earlier in their lives, which has left them out of pocket and needing to reclaim some of it. This help can be crucial. Indeed it is likely more parents will have to ask their kids for money in the future, particularly parents who are near to retirement and are struggling to put enough money aside.”

The research said parents called in £16.35 billion from their children last year, compared with £11 billion the previous year.

Mr McGowan added: “At a time when most people are tightening their purse strings, families have to resort to helping each other out, and this is likely to become ever more prevalent.”

Source

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And I thought I was the only person who actually lent to their parents rather than use them as an interest free loan service!

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Oh dear! Looks like there's been a run on the Bank of Mum and Dad! I wonder if Santander will swoop in and save the day? ;)

Source

Well its a nice fun headline.....

... but that source does not actually say who prepared this "report". Reading between the lines it might be Scottish widows, but there is no reference, no background, no context, no proportions of the population, no substance whatsoever. A journalist could write anything they like with that lack of attribution, - they could write a story that blue cheese monsters ate Elvis with just as much evidence to back it up.

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We give money to my mother - at 78, and with the capital from her divorce gone to Equitable Life, she needs help with big ticket items.

We also try to help out our children who are struggling a little with the demands a baby makes on the purse.

But there you - we're typical boomers - poor parents and poor children and all we can do is go on round the world cruises. <shudder> Actually I haven't been out of England since 2002, when I spent a week with a friend, unlike said poor parents and children, all of whom seem to travel quite a bit.

db

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Well its a nice fun headline.....

... but that source does not actually say who prepared this "report". Reading between the lines it might be Scottish widows, but there is no reference, no background, no context, no proportions of the population, no substance whatsoever. A journalist could write anything they like with that lack of attribution, - they could write a story that blue cheese monsters ate Elvis with just as much evidence to back it up.

Easy peanuts for the cerebally challenged boomer basher. Open mouth and swallow says Dr Willets. :lol:

Edited by campervanman

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Easy peanuts for the cerebally challenged boomer basher.

Open mouth and swallow says Dr Willets. :lol:

They got away lightly - could have been (Dr?) Gillian McKeith (PhD? Pan habit Disorder)

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Haha, this is quite timely. The in-laws gifted the missus a substantial amount of money two years ago. Told us to buy a house with it. Given the prices and because we decided not to rush in and wait a bit for prices to cool down It's just sat there in a load of savings accounts. Now father-in-law has made enquiries about the status of the gift and hinted he would like it back.

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Haha, this is quite timely. The in-laws gifted the missus a substantial amount of money two years ago. Told us to buy a house with it. Given the prices and because we decided not to rush in and wait a bit for prices to cool down It's just sat there in a load of savings accounts. Now father-in-law has made enquiries about the status of the gift and hinted he would like it back.

Most likely the real reason he gave her the money is because 'house prices always go up' so he thought if his daughter bought a house it would enrich the family greatly and help him in his retirement. Now that dream is gone he is asking for the money back instead. If you had bought a house with the money and it had lost equity, he may still be asking for money back.

Always be careful around perceived generousity.

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  • 192 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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