Family members 'struggling to help each other'

Families are having to come up with other ways to help each other out, rather than lending money during the credit crunch, it has been found.

A poll carried out by Chelsea Building Society found that almost 30 per cent of people feel unable to loan cash due to strains on their own finances.

However, 59 per cent said they were willing to help out in other ways.

Some 54 per cent were found to be providing free accommodation to family members, while 51 per cent said they look after children so that a member of their family can work.

However, this could be bringing families closer together, as family members see more of each other through living in the same house.

It was also discovered that when money was lent, it was paid back with thanks 60 per cent of the time.

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."

A recent report from investment provider Skandia found that 40 per cent of parents admit to worrying that it will be their responsibility to help their children pay off debts as they grow older.

Meanwhile, a generous 31 per cent said they expect to provide a home for their children throughout their adulthood.