ClearDebt | Newsdesk

Parents in Britain are having to delay retirement to ensure they do not have to struggle with debt due to the financial burden placed on them by their adult children.

New research from The Children’s Mutual has discovered that 57 per cent of parents whose offspring are aged between 18 and 30 years old have claimed they have no option but to finish working at a later age.

Over 40 per cent of parents have said that they expect to be in employment for around five years longer than planned because of the monetary woes their kids are experiencing in young adulthood.

David White, chief executive at the child trust fund provider, commented: “Worryingly, the number of parents getting caught in this middle-age parent trap will almost certainly continue to rise.”

Earlier in the month, findings from the Scottish Widows Savings and Investments annual report showed that young adults were relying on their parents for financial backing, with the average “savings sap” rising from £11,800 to £13,660.

By Joe Shervin

Those having difficulties with debt may want to take note that tax payers are wasting money by not utilising an individual savings account (Isa), a study has suggested.

Research carried out by the Fair Investment Company has shown that people are throwing away an estimated accumulative amount of £15.5 billion in unnecessary tax payments.

The firm said that 37 per cent of payers subscribed to a cash Isa in the 2008-2009 period, meaning that the remainder lost money, which could have otherwise been saved.

Nick Scarrett, head of investment and pensions at the business, said that the statistics “highlight the fact that by paying tax on the money they could have saved in an Isa, UK taxpayers have thrown away billions of pounds in tax payments”.

Less than one in ten individuals in Britain are aware of what the new Isa limit will be from the upcoming tax year, Lloyds TSB has revealed.

By Joe Shervin

New government legislation proposals to combat credit card debt have been described as not doing enough to tackle the problem by an industry expert.

Chris Tapp, director of Credit Action, has said that the plans have missed out on an opportunity to completely overhaul the system.

The scheme means that lenders would not be able to increase limits or rates on what people owe and consumers will have the right to reject such inflation, with payments going to the debt with the highest interest levels first.

Mr Tapp commented: “The government, in our view, is taking a step in the right direction but it is only a baby step.”

Earlier in the month, Lord Marlesford warned against spiralling credit card expenditure, stating that the amount of debt racked up in such a manner had increased by £8 billion over the last year – meaning an accumulative £900 million needs to be paid in interest each month.

By Joe Shervin

Government-backed plans to help people in debt have been criticised by two industry bodies.

Debt solution provider Cleardebt and Debt Resolution Forum have both stated that the scheme fails to meet the needs of those with significant financial worries.

The proposals have been drawn up by the British Bankers Association, Consumer Credit Counselling Service and Citizens Advice and aim to provide a narrow window – in which people only need to repay the minimum amount they can muster – to those who cannot afford to pay back what they owe.

David Mond, chief executive officer at Cleardebt, said that the arrangements would be beneficial to few and problematic for many.

He commented: “The fact is that most struggling debtors don’t have short-term debt problems … they’ve been failing to cope for years and a six-month window will do nothing to help.”

Last week, figures released by uSwitch.com showed that high energy bills caused by the cold weather this winter had put 5.5 million individuals into debt with their suppliers.

By Joe Shervin

Women may be less likely to struggle with debt as an industry expert has said that members of the fairer sex are more efficient than men at budgeting.

Jasmine Birtles, founder of Moneymagpie.com, commented that females find it easier to look after their money because they are more accustomed to managing the family home.

She explained that women have to be financially organised out of necessity: “On the whole they are the ones dealing with day-to-day purchases, the supermarket shopping, shopping for the children, things for the home.”

Women understand that basic costs have to be met in order for the household to run smoothly and they take this into account when purchasing goods, she added.

Figures released by Lovemoney this week showed that females are more adept at keeping on top of monetary problems and are also less likely to build up debt through a loan or on a credit card.

By Joe Shervin

An increased number of people may soon be battling debt as it has been revealed energy bills are on the rise.

Research conducted by uSwitch.com found that individuals are currently spending, on average, £279 more on the costs than they were in 2008.

The hike means that a rise of 31 per cent has taken place over the last two years.

Consumers are being left with a £3.1 billion “hole in their pockets”, according to the price comparison service, despite cuts in payments administered in 2009.

Ann Robinson, director of consumer policy at the website, explained that the reductions “will seem like a drop in the ocean to cash-strapped consumers, especially as most of the cuts this year came too late to help people with their winter bills”.

Last week, statistics released by Gocompare.com revealed that 43 per cent of people are paying too much for commodities such as electricity and gas.

By Joe Shervin