Am I More Susceptible to Debt as a Parent?

Money is a major concern for many parents and it is easy to see why when you look at the cost of living in today’s day and age. In addition to mouths to feed and having to provide shelter, there are many expensive costs involved when it comes to parenting and this can put a serious strain on your finances which is why it is so important to budget and try to tuck away savings if possible.

Parenting Costs

School fees, clothing, activities, entertainment and then various unexpected costs like trips away or a friends birthday are just a few of the costs that are involved in parenting. You then have your own various costs to cover, such as motoring which can be a huge expense and particularly if you spend a lot of time running the kids around.

Parents & Debt

It is for these reasons why a parent is more susceptible to debt and why more and more are having to take out loans to make ends meet. This is more often than not when an unexpected cost appears, such as a school trip or a car repair. Fortunately, it can be easy to obtain a loan today as it is such a common requirement. This is true even if you have poor credit as places like Likely Loans offer personal loans for people with bad credit scores and this can be a good way to start rebuilding your rating.

Millennial Approach To Credit

Many parents today turn to lenders when they are struggling to make ends meet and this is understandable. In fact, it is now common for Millennials to start turning to lenders due to the fact that they often have less secure jobs, they may have major outgoings in terms of rent and bills and may require credit to fill the gaps. Provided that they can cope with the debt then this can actually be a good thing as it enables Millennials to build their credit score which could become important later in life when applying for a mortgage or loan. However, debt can also be a major concern for this group with many having student debt following them around which is problematic if they do not have a secure job or work on zero-hours contracts.

Overall, parents are particularly susceptible to debt due to the major outgoings and increased cost of living and it is a shock to the finances which will result in them requiring credit. As for all ages, this is not a problem if they are able to manage the debt and pay it off over time, but this can be challenging in the current climate and particularly for younger generations who may not have secure work or a large income to rely on.