PARENTS end up an average of £1,140 in debt in the year following the birth of their first child, a survey showed.

Four out of ten parents go into the red in the 12 months after having a baby as they struggle to balance the increased costs associated with their new child and a loss of income.

The research, by MoneyExpert.com, found while the average parent goes £1,140 into the red, 7 per cent end up owing £2,500 after the first year and 2 per cent owe more than £7,000.

About 39 per cent of parents saw their income drop after having a baby, with one partner giving up work or reducing their hours in the first few months after the birth.

Nearly three out of ten people asked family to help them, while 22 per cent used a credit card and 10 per cent took out a loan.

Sean Gardner, the chief executive of MoneyExpert.com, said: "Financially, a new baby can cause havoc."

This article: http://news.scotsman.com/uk.cfm?id=1583402007



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