MORE than a third (37 per cent) of families in Northern Ireland say they are getting into debt to cover the expense of back-to-school costs, according to findings in a survey commissioned by the Irish League of Credit Unions (ILCU).
Parents are paying on average £754 per primary school child and £1,160 per secondary school child.
But those of primary school children are on average in debt of £252 due to funding school costs, while for secondary school parents, the average debt reported is £291.
And 38 per cent of those in debt say they have turned to a doorstep lender/payday loan company to cope with back-to-school costs, with a quarter of them borrowing between £400 and £500.
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The study reveals that 76 per cent of parents cite back-to-school costs as a significant financial burden. Half say those costs are their biggest back-to-school related worry, well ahead of concerns that children won’t settle or make friends.
And six in 10 parents at primary school level and (eight in 10 at secondary level) feel pressurised into buy branded goods and items for their children.
More than a third (37 per cent) say they will be forced to deny their children certain school items because they cannot afford them.
Of this cohort, almost a third say they cannot afford new school shoes for their children, while four in 10 say extra-curricular activities will have to be cut from the budget.
Well over a third say they will have to sacrifice spending on family holidays to meet school costs, 20 per cent will cut spending on household bills and 18 per cent say spending on food will have to suffer.
Paul Bailey, ILCU's head of marketing and communications, said: “Despite the current recovery of our economy, families continue to struggle to cope with the cost of sending their children to school.
"We are seeing increasing numbers of parents saying they are in debt, and a rise in the numbers saying they are turning to doorstep lenders and payday loan companies.
"We would urge these parents to talk to their local credit union, even where they feel they have a poor credit history. Our staff are on-hand to give guidance on household budgeting and financial planning.”
He added: “Using doorstep lenders and payday loan companies, many of whom charge exorbitant interest rates, will lead to a recurring cycle of unnecessary debt and irrational borrowing, and we would seriously urge parents to reconsider going this route."
