The ongoing pandemic continues to take its toll on the British economy, wreaking havoc with the people’s finances.
In a recent financial survey – conducted by KIS Finance – it was discovered that 45.5% of people have been forced to turn to some kind of credit facility or borrow money from friends and family during to the pandemic.
Alongside this, a further 43.2% of people expect to seek out more financial help before the end of the year. Young adults between 25 and 34 were the worst hit.
As well as asking consumers if they had to take out any credit due to the pandemic, KIS Finance also found out what type of credit people are turning to in these troubling times.
Of the 45.5% of people that fell into this category:
- 25.8% went into an overdraft
- 15.5% took out an additional credit card
- 10.5% sought help from family or friends
- 7.7% used a personal loan
- 6.4% had to sell assets
- 5.2% took out a payday loan
The data suggests that short-term borrowing is the most popular amongst respondents, which raises a few concerns. Primarily, it may lead to many people ending up in large amounts of debt in the next few months.
66.1% of 25-34 year-olds needed financial help and perhaps more worryingly, 66.7% of this age group also believe they’ll need more financial help by the end of the year.
The other age groups were as follows:
- 18-24: 49%
- 25-34: 66.1%
- 35-44: 63.6%
- 45-54: 38.7%
- 55-64: 23.6%
- 65+: 16%
More struggles expected to come with 43.2% of respondents believe they will seek more financial help in the next few months.
When quizzed as to the reasons for this, 33.44% said fear of job loss/redundancy, while 27.98% said to cover the gap when payment holidays end.
Around a quarter (25.34%) of respondents believe they’ll need extra help to pay for Christmas.
If you’re struggling with debt, it can be hard to know where to turn. But with lots of free advice services available across the UK, you can find help in a way that’s best for you.
