Pay As You Go Credit Card for Expectant Parents
New research reveals expectant parents have borrowed £2.32 billion to cover the cost of their new family additions.
Find out how a pay as you go credit card can help expectant parents budget.
On average parents need £2,980 per family to fund the necessary purchases, included in this are decorations and furnishings for the nursery, a buggy, car seat, baby clothes and toys, according to Sainsbury’s Finance.
Over the last five years 6.1 million Brits have planned for a new baby or are in the process of doing so, these parents were shown to use savings, borrowing from family and friends, credit cards and personal loans as means.
“Preparing for a new arrival can be expensive when you take into consideration costs such as buying the necessary equipment, upgrading the family car or maybe even extending your property,” said Steven Baillie, Sainsbury’s Finance head of loans.
Around 643,000 parents and expectant parents will also borrow money to fund other purchases such as a new car or home improvements – on average £5,010.
It is estimated parents take out £2.32 billion in total to fund these extras over five years, which is a worrying amount due to the high interest rates many of these loans will incur over this time.
Regionally, it was found the Scots spend the most for a new baby, on average £3,690 per family, and the South East follow spending £3,510, while parents in the Midlands spend the least, on average £2,510.
Pay As You Go Credit Cards
While parents will want to provide the best for their new born the cost of these purchases could land many in debt.
If you are expecting a baby or are parents struggling to manage their income with the new added strain, a prepaid card could help parents to budget.