Family bank out of cash
The rising cost of living means families can no longer rely on each other for loans and are resorting to other means of support, a survey has found.
According to research from Chelsea Building Society, while 59 per cent of people are willing to help their families, almost 30 per cent are unable to do so due to the rising cost of living.
However, helping out in other ways is becoming more popular.
Providing accommodation free of charge to immediate family members (54 per cent) and offers to look after children so that immediate family members can work (51 per cent) are the most popular ways to help out, the study found.
However, offers of financial help tend to only extend to immediate family. Some 22 per cent said that they would remortgage their house to help out an immediate family member in financial difficulty, but only two per cent would take this step for a relative in their extended family.
Darren Stevens, director of customer services at Chelsea Building Society, said: "Whereas previously Britons could rely on their family members to bail them out when they got into difficulty, now when they turn to their families as a last resort they might find that their families are also suffering the pinch.
"A lack of extra funds means that families have to help each other out in non-financial ways.
"Britons should start taking control of their own finances through proper financial planning and saving, bypassing a potentially embarrassing situation within their own families."
When family members do lend each other money, Britons have had a largely positive experience. In 60 per cent of cases when money is lent, it is repaid swiftly with thanks, Chelsea Building Society said.
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