By using this service and related content, you agree to the use of cookies for analytics, personalised content and ads.
You are using an older browser version. Please use a supported version for the best MSN experience.

Money Top Stories

Soaring funeral costs force grieving families to take out payday loans

Mirror logo Mirror 25/02/2016 By Ruki Sayid

© Provided by Mirror Millions of hard up Brits are going into the red to cover the cost of loved ones’ funerals.

Bereaved families struggling to make ends meet are being forced to take out payday loans or use plastic to give beloved relatives a fitting send off.

A study has found that the cost of a funeral has risen from £3,456 to £4,136 year-on-year and is set to soar by 22% to £5,066 by 2026.

According to the British Seniors Insurance Agency, a quarter of Brits have been stung by a shortfall totalling £1.6 billion in the last five years.

And 2.7million have gone into debt to make sure their loved one has had a proper final farewell.

Younger mourners were hardest hit by funeral costs with more than four in ten 18-34-year-olds resorting to plastic to pay for a burial or cremation and more than a quarter turned to expensive payday loans.

© Provided by Mirror

And over a quarter of bereaved Brits have dipped into their savings to cover the cost while one in ten have raided rainy day funds or borrowed cash from friends.

Four in ten adults thought there would be enough in the estate to cover funeral expenses, a quarter said they would have to pick up the tab themselves and a fifth were at a loss to know how they would pay for a family funeral.

Only one in five had a funeral plan to make sure the cost of their last journey would not be a burden on relatives.

Dave Sutherland, managing director of Neilson Financial Services said: “The emotional impact of losing a loved one is devastating and it is only exacerbated when a family member or friend has to deal with not only managing the affairs but also having to pay the funeral costs.

“The research reveals that many, particularly the younger generation, have to resort to forms of credit resulting in their grief being made worse at what is already a difficult time.”


XD Load Error


More from The Mirror

image beaconimage beaconimage beacon