Survey reveals 4 in 10 workers are relying on new loans, credit cards or overdrafts to make ends meet due to pandemic

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30th September 2020 17:33 - Financial Services

Survey reveals 4 in 10 workers are relying on new loans, credit cards or overdrafts to make ends meet due to pandemic: A survey of UK workers has revealed that 40% are relying on at least one credit card, overdraft, or loan to get by.

Two-thirds (66%) admitted that their spending habits have changed since the start of the pandemic.

The Hastee's Workplace Wellbeing Study polled 2,000 people, and found that a third of respondents were being careful with their spending each month, while more than a quarter said that they had gone without essential items because they did not have enough money. 

The research also found that stress due to worrying about not having enough cash has caused more than a quarter to be unable to sleep at night. Finance-related stress has also impacted relationships with partners (15%), health (14%) and concentration at work (13%), with 7% of respondents revealing they have called in sick because of it.

High-cost credit 

Almost three in five of the workers surveyed (59%) revealed they have applied for high-cost credit options, despite knowing they are unable to make the repayments. Younger people were even more likely to regularly source high cost credit, found the survey,  with more than half turning to it once every three months or more, and almost two-fifths (38%) needing to use it every month or more. 

The survey found that for more than a quarter of 18 to 24 year-olds, their financial situation is so tight they are never able to clear their personal debts each month (27%), while a fifth have had to borrow from friends and family to make ends meet. Some young respondents also said they have regularly gone without basic food due to money concerns (16%), while 8% have gone without heating. 

Two-thirds of all respondents said they have had to change their spending habits due to Covid-19, including spending less on what they consider 'luxury' items (39%) and shopping less frequently each month (35%).

Almost six out of 10 workers (59%) said that they would like to be able to access their wages early to prevent them from resorting to high credit loans.

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