On average of those who have approached Creditfix for support with their personal finances, parents of children under the age of five was £16,570.
Explaining the findings, Layla Johnson, regional manager at Creditfix, said: “Almost half (47%) of our customers are parents and our data shows clearly that the additional costs of parenthood are increasing the levels of debt being taken on. The rising cost of living means that we are expecting to see this additional strain continue to take its toll on households.
“The figures across the UK paint a worrying picture – we know that mortgage and rent costs are increasing for many, alongside other essentials like energy and food bills. In this climate, parents are confused and desperate – and forced to make difficult decisions about what to cut out in order to make budgets stretch as far as possible.”
“Money worries put a lot of pressure on family life”
Jo Middleton, founder of the lifestyle and family blog Slummy Single Mummy, who has two children and a grandchild and contributed to the report, added:
“Money is one of those issues that can seep into so many areas of our lives – and it’s something we often don’t like to talk about, even with partners or other family members. When we don’t talk openly about money though, it can become something even scarier and can cause resentment and anxiety.
“On a practical level, money worries put a lot of pressure on family life in terms of what you’re able and not able to do. Not having money for any kind of treats or activities can actually be isolating and often cause a lot of loneliness, especially for single parent families over the winter when it’s harder to get out and enjoy free activities outdoors.”
“Life is really difficult for families at the moment”
Childcare is another significant cost for parents, Creditfix research revealed average full time nursery costs per child are £276 per week, with parents in Harrow, in Greater London, having the highest day rate for nurseries across the UK. Parents in the borough are paying an average of £85.17 per day.
Layla added: “Unfortunately, childcare costs have continued to rise in recent years, especially for those working full-time jobs. A lot of parents aren’t in a position to pay these rising fees and this can put a real strain on family life.
“Our research also shows that there are huge differences in total childcare costs according to the month your child is born. The data shows that for children born on 1 September, parents could pay an average of £13,909 for childcare, in contrast to £876.22 if their child was born just a month earlier in August.”
Children just need a warm home and love
Danielle is a 32-year-old mum from Essex. She described how her debts spiralled after having her second child. She said:
“As a new parent, you have so many extra costs. Essentials like nappies and baby wipes are expensive, and you can spend a fortune on baby chairs and cribs, which they grow out of quickly. Although it’s easy to pick them up second-hand, there’s still a cost.
“My debts spiralled when my daughter, now two, was born. I already had a three-year-old son, and I thought they needed the best of everything – including the latest fashion clothing and gadgets. What I now know is that all they need is a warm home and love.
“I bought a lot of things from catalogues that my daughter didn’t really need, and eventually reached the point where I owed £9,500. I know from my own experience that it’s really hard to ask for help. You feel embarrassed that you’ve managed to get yourself into so much debt but there’s so much support out there. Even speaking to someone at Creditfix helped to take some of the stress and pressure away. Now I’m paying off my debts in manageable amounts through an IVA, instead of worrying that they’ll increase even more.
“Life is really difficult for families at the moment, and I’m concerned about the cost of gas and electricity and whether I’ll be able to keep my children warm this winter. But at least I’ve got my spending and debts under control.”