Maternity depart pushing new mums into debt – together with a mean £1,770 in scholar mortgage curiosity – figures present
New mums are being pushed into debt after having a child – together with racking up an additional £1,770 in scholar mortgage curiosity on common – figures present.
Along with going through lowered earnings and the elevated prices of a new child, practically 1 / 4 of girls are occurring maternity depart with none financial savings.
A examine of latest and anticipating mother and father by finance firm Credit score Karma discovered that 26% of girls go into debt to cowl maternity depart – averaging £2,800 in borrowing.
That is a £560 improve from 2018, the corporate says.
The brand new analysis comes because the cost of living crisis within the UK continues, with rising gas and meals costs hitting the general public arduous.
Akansha Nath, head of partnerships at Credit score Karma UK mentioned: “Girls are sometimes deprived financially all through their life, and the duty to offer beginning performs an enormous function on this gender disparity.
“At a time when the price of dwelling is affecting most individuals, and each penny counts, it is extra necessary than ever that ladies make the most of any assist accessible to them.”
Girls with scholar loans face extreme curiosity costs on their loans while on depart and unable to work, accruing a mean of £1,770 mortgage curiosity in simply six months of depart, the corporate says.
Maternity depart can even impression their credit score rating, setting them again a mean £17,000 in curiosity over the course of their lifetime.