The anticipated arrival of a baby is great news, whether it’s the first or a further addition to the family.
And Equifax, the leading online credit information provider, is advising potential parents to plan their finances in advance of the arrival of the latest new member of the family. Neil Munroe, External Affairs Director at Equifax, says, “It is estimated now that the cost of raising a child until they reach 21 is as high as £180,000*. Just as you would with choosing a suitable name and getting the nursery ready, it is important to start planning the financial considerations ahead of the arrival of the new family member.”
The financial burden of an extra mouth to feed and clothes to buy can push new parents into debt if they haven’t planned well. And this is often at a time when the family loses a main salary income. If you do think that the arrival of a new baby is going to cause debt stress, it’s better to speak to your creditors upfront.
Equifax’s Top Financial Tips ahead of the arrival of a new Baby
1. Get a copy of your credit file to get a true picture of your finances.
2. If you think you will struggle with repaying debts when you are on maternity leave make sure you inform your creditors. They will appreciate this and may be able to make alternative arrangements.
3. If you do fall behind on your payments make sure you put a note on your credit file explaining your situation.
4. Ensure you get all the help you are entitled to such as maternity pay, child trust fund and family tax credit.
5. Take a payment break if possible from big expenses such as your mortgage.
6. If you have any credit card debt or high interest loans try to pay these off before the baby arrives – and while you have two incomes coming in.
7. Alternatively, switch your current balances to a 0% credit card for a limited time if you are planning to go back to work or a life of balance credit card which will stay at a low fixed amount until you have paid the whole amount off.
8. Debt v saving - think about saving only if you have no debts to pay off. There is no point putting money aside and getting 5% interest if you are paying 8% interest on a credit card or loan.
9. Always use price comparison web sites before you buy
10. A recent survey says that 2 out of 3 adults in the UK don’t have a will. Ensure your family will be protected if the worst should happen.
* BBC March 2007
Equifax advises parents-to-be to plan their finances – as well as the nursery – for the new arrival
www.equifax.co.uk | 
The Best Deals At Groupon
