Grieving turning to payday loans
As the topic of funeral costs continues to hit headlines, research shows that the average cost of a basic funeral has risen for the 11th consecutive year, now standing at £3,693. This figure does not include any discretionary costs such as memorials, flowers and catering which can add up to an extra £2,000. With a lot of these costs not taken into account until the time, many struggle to come up with the funds for a funeral at short notice.
Now, new research has revealed that 2.7 million people have had to resort to taking out some form of finance such as payday loans and credit cards. An average of £576 million has been borrowed from pay day loan companies and £485 million spent on credit cards to pay for funerals over the past five years.
The younger generation struggles the most, with almost half of respondents aged 18 to 34 having used a credit card and over a quarter resorting to a pay day loan. In total, the group has borrowed £464 million from pay day loan companies and contributed £338 million to the overall credit card amount.
The research also calculated that the cost of funerals will have risen by a further 22% by 2026, meaning more people will struggle to find the funds and may resort to methods like these.
The younger generation are also most often responsible for managing the affairs of a loved one, with a quarter taking on the role of organising everything from possession, clearance and sale of the home, executing a Will and administration tasks such as sorting post, closing bank and phone accounts as well as money.
Losing a loved one is a devastating and difficult time. Family and friends may not be able to concentrate on the important grieving process if faced with financial concerns and the worry of possible debt, which will result in unnecessary added stress. These statistics come as it was found that only 21% of UK adults have some form of cover in place to ensure the costs of their own funeral.
When you take out a Golden Charter funeral plan, you protect your family from rising funeral costs which can help make things easier at a difficult time. We also offer a range of legal services, which provide peace of mind for you and your loved ones. If you would like further information on our funeral plans and legal services, please request an info pack.