New credit rules 'may keep families in the black'

A review of the legislation regarding credit could help parents stay out of debt, which can severely hamper child saving plans, according to one financial advisor.

Statistics published by CreditAction this month show average household debt in the UK is £59,730 including mortgage repayments, leaving many families with little to put into their children's investments.

The government recently announced a series of measures to help debt-ridden families, including banning credit card companies from raising credit limits without request and fair rules for debt enforcement.

The Money Advice Trust (MAT) says it supports any action to promote responsible lending and borrowing decisions.

Speaking for the MAT, Becky Boden-Wilks says the government measures may force families to confront their debt problems earlier and think about what they can "realistically afford".

She says the MAT welcomes the new legislation and advises parents investing for children: "It is about planning ahead, doing your budget sheet."