A survey of more 1,000 new mums found that 28% ended up in the red during their maternity leave, racking up an average debt of almost £2,500.

Many have to rely on help from others to deal with their financial situation, with one in ten borrowing money from their family.

A further 14% of new mums rely on credit cards, loans and overdrafts to make ends meet while they are looking after their newborn baby.

“Planning for a baby is tough at the best of times, but in the face of the soaring cost of living there is even more pressure on family finances,” said Ann Robinson, Director of Consumer Policy at uSwitch.com, which carried out the research.

“For some families this can mean some very difficult decisions. It’s heartbreaking that so many mums are being forced into debt or having to cut short their maternity leave just to make ends meet.”

More than one in ten new mums cut their maternity leave short as a result of the financial pressures the break from work can cause, while 9% have had to rethink their plans to stay at home.

“Sadly, very few mums have the luxury of being able to stay at home for the whole of their maternity leave and even fewer have the choice to be a stay at home mum,” added Ms Robinson.

“It’s clear that more needs to be done by the Government to help families cope with the financial burden of parenthood, but in the meantime families can help their situation by reviewing household budgets and looking at where they can cut costs to save a bit of extra cash.”

The research also found that only a quarter of mums-to-be feel financially prepared for a child, while 23% delay having a child because they can’t afford it.

Maternity leave only exacerbates the problem. Those going on maternity see their household income drop by almost half, yet four out of ten do not save money to cover the time off.

On top of this, new mums are splashing out during their maternity leave – spending more than £1,400 during their time off.

While many are relying on credit cards to make ends meet, this is can easily lead to yet more debt. To avoid getting into credit card debt, take out a prepaid card that you load a certain amount on to.

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Prepaid Buzz

By
This Is Money Reporter

Last updated during 10:46 AM on 27th Feb 2012

A ‘debt noose’ is tightening around households, with families forking out roughly a entertain of their disposable income each month on seductiveness alone.

The seductiveness weight for a final 3 months of 2011 reached an normal of roughly £200 a month, debt gift a Consumer Credit Counselling Service (CCCS) warned in a news expelled today.

The commission of income spent on debt seductiveness rose by 0.1 per cent from a prior entertain as vital costs outstripped salary increases, a Consumer Debt and Money Report said.

Money worries: Since a second half of 2009 a share of disposable income going towards seductiveness payments has been stable, according to a report

Older people are increasingly influenced by debt problems, it warned, highlighting a rising direct for debt recommendation from late-stage professionals aged between 45 and 59.

‘There has been a light arise in counselling direct from this group, with a share rising from 22.8 per cent in 2005 to 31.7 per cent by (the finish of) 2011,’ a news said.

UK households’ integrity to compensate down their debts has slowed down as disposable income has been swallowed adult by high inflation, with costly petrol, utilities and housing costs and deteriorating practice conditions, a gift said.

The news said: ‘Interest payments are a complicated weight on domicile finances.

‘With remuneration required regardless of mercantile circumstances, they poise a vital hazard to a solvency of many families.

‘As a vital spending member that contingency be met on time, a need to use debt is posing a poignant plea in a stream mercantile downturn when domicile heads remove their jobs and income sources dry up.’

Demand for debt recommendation will rise in 2014, a news forecast, reflecting a ‘lasting difficulty caused by a financial crisis’.

The news likely rising unemployment, though a ‘positive effect’ of a diseased economy for gladdened households will be several years of low seductiveness rates.

The ratio of one in each 4 pounds of disposable income spent on servicing debts increasing to one in 3 progressing during a financial predicament as households piled on debt and afterwards faced a deteriorating work market.

Since a second half of 2009, a share of discretionary income going towards seductiveness payments has been fast and a news likely it will sojourn this approach in a entrance months.

The news also tracked a pointy boost in debt debt as residence prices have risen, from around £20,000 per domicile in a early 2000s to some-more than £47,000 by Dec 2011.

It highlighted high rates of home tenure in a UK during 66 per cent of households, compared with 42 per cent in Germany.

‘With rising skill prices and rising borrowing, debt debt has grown in significance compared with other areas of domicile finances,’ a news said.

Under pressure: Debt payments are a ‘growing weight on too many UK households’ warned CCCS authority Lord Stevenson

‘This growth is clear in a flourishing share of debt debt as a suit of sum domicile debt. This has risen from 80.3 per cent in Jan 2000 to 86.3 per cent by a finish of final year.’

Property repossessions began to boost in 2005, indicating households were already removing into trouble. Repossessions climbed until 2009 though have eased off.

The news said: ‘The final dual years have seen some easing to about 36,500 but, detached from a center of a crisis, they sojourn during a top turn given 2000.’

CCCS authority Lord Stevenson said: ‘While debt levels continue to decline, seductiveness payments are a flourishing weight on too many UK households.’

London and a North West have seen a top direct for counselling, while Wales and Yorkshire and a beside Humber are areas with some of a fastest rises in direct for help.

Research was formed on a charity’s database and research by a Centre for Economics and Business Research.

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To fix your problems on debt, you can try different solutions. One of these solutions that you generally hear is debt consolidation. There are lots of fiscal institutions that provide debt consolidation guidance to folks.
Debt consolidation is a technique of combining your credit accounts into one.

You can do this process by doing a consolidation loan. Many debt holders accept that by consolidating their obligations they can save cash and can even get lower rates on their account.

What will occur is that your loan will be cleared out as fast as it has been consolidated. Both Sides of Debt Consolidations cannot be purchased by anyone that wants it ; it needs special standards to consider before it’s possible to successfully consolidate your debts. One of these needs is an SOA or statement of affair. This SOA shows how someone is doing in terms of costs ; it shows the people income and how much he is spending.
Debt consolidation may clear your prior debt however it will create a new debt with longer term of payment, doubtless more than twenty years or less but most people viewed it as better than bankruptcy.
There is a positive side and a negative side of debt consolidation. The brighter side of this process is a simple and manageable way of handling your account. Instead of different bills from different obligations you can just focus on one bill and one account and payment thus making less gaffe when payment is concerned.

However , even if your account has been consolidated, the bank can still see your closed accounts. This often may give a negative impression to the bank. Debt consolidation means getting a new account but with each new account created on your name it would be a minus score to your credit report.

So in the end you’ve got to ask if debt consolidation would be the most appropriate choice. Debt consolidation means creating a new account and merging all your existing debt accounts into one. Most folks view this loan as an immediate solution to their multiple credit issues.

Possibly the nicest thing to do is to ask direction from the debt control company. The debt administration company will be in a position to come up with answers to your problem but from the standpoint of professionals, debt consolidation isn’t the answer. A good plan in lowering your costs is a start of a debt free life.
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Credit Card Debt Settlement

As a result of the sluggish economy, most medical debts end up being unrecovered.It is worth mentioning that today over 40 million Americans are without health care insurance. Thus, the chances of an account turning delinquent increases manifold. Turning to a debt collection agency for medical debt collection can definitely help you. These professionals take into stock every detail of the case in question.

Possessing a great deal of charisma and tactical prowess will help medical debt collectors perform their jobs well. Generally, the patients are already going through a mental turmoil while recovering from a medical state. Beyond this point, their debts should be handled by a professional. A medical practitioner holds a special place in the life of a patient and medical debt collectors understand it very well. Trust between a practitioner and a patient is what a medical debt collection agency insists. Ease your tension by keeping good relationships. If you need assistance collecting on overdue accounts contact a medical debt collector.

It is mandatory to take some vital steps to ensure an effortless medical debt collection. First, you must take down the patient’s details thoroughly. A vital entry needed would be your social security number. Other than this, you can note their name, date of birth, contact numbers, email address. These things can help you track patients for billing. Secondly, make an attempt to find out about the insurance coverage the patient has. What contents does it have? This knowledge reduces confusion at a later stage. Should your patient be without health insurance coverage, you can also present him with some easy payment options.

Moreover, it has been observed that patients once they are discharged from hospital/clinic tend to delay their medical payments. To be on the safe side, you should have clear guidelines as to how you would like to remind you erstwhile patient of his bills. It may happen that because of some other pressing matters your patient forgot to make the payments. Monthly and fortnightly reminders sent to patients can help you identify patients who have to be referred to medical debt collectors. Now,that you have a list of the patients who have been ignoring payment reminders for no specific reason, submit these accounts to a medical debt collection agency and relax.

Therefore, do not give up the idea of recovering your own medical debts for that fear of driving aside your patients. When a expert collection agency deals with medical debt collection for you, they ensure that you get back again your dues quicker without any damage to your own reputation, credibility as well as inflow of individuals to your establishment.

Credit Card Debt Settlement

In severe cases, some people are struggling to pay the monthly dues of numerous credit card suppliers. This is a perfect example of somebody using the card too much and not thinking how one will be able to pay it off. Just when you think situations can’t get any uglier, these debts multiply swiftly because of the high rates of interest credit cards have. People who find themselves in this position wind up with a balance that continues to increase because of the substantial interest rates credit cards have. Happily there is a financial opportunity that allows you to put a halt to your rapidly growing debt. A bill consolidation loan could possibly be the answer to your prayers.

Credit card debt consolidation takes all the credit card debts you have from the various banks and integrates it into one large loan. This is done so that you can put a stop to your dramatically increasing debt, and shift it into a different debt or loan that has friendlier interest rates. This option also saves you from your bad-debt problems with credit card institutions. Keeping track of several credit card obligations can be quite discouraging, which is why this option can save you the trouble and make you totally focus on one statement in isolation.

Credit card debt management allows you to pay your debt at a cheaper interest and for a lengthier period of time. The reason this sort of loan is able to offer lower rates is because the outstanding amount is disperse over a a lot longer period of time. The type of terms credit card debt consolidation has, gives the debtor precious breathing space in order to pay the liability and have enough money for routine expenses.

For more free and useful resources to help with bill consolidation or credit card debt management be sure to visit: www.livingoutofdebt.com

Credit Card Debt Settlement