UK’s PANDEMIC FINANCES: 61% all adults say their funds have been hit by covid
Brits are said to have saved an additional one hundred and eighty billion pounds throughout the pandemic - that’s almost 10 per cent of the UK’s annual GDP.
But if you’re concerned that isn’t you, as Money Expert Jasmine Birtles explains, you’re not alone - despite how you might be feeling....
Roughly 61% of all UK adults - say borofree - have been financially affected by the pandemic over the last year, with more than a fifth turning to loans or borrowing from family and friends.
Young people have also been hit too - the rise of so-called Buy Now Pay Later services being used by over a third (33%) of 25-34 year olds.
Just having a conversation Jasmine says is vital if you are concerned about cash.
The research from borofree suggests:
61% of UK adults have been financially affected by the pandemic, with 19% seeing a reduction in their income
More than a fifth (23%) have taken out loans, or borrowed from friends and family, to help manage their finances
Buy Now, Pay Later (BNPL) being used by 22%, rising to 33% for people aged 25-34.
26% have not been able to save, and 45% had no prior savings to fall back on
Over the course of the last year, many of us have been forced to turn to friends and family, or high-cost borrowing alternatives, just to make ends meet.
In fact, more than a fifth (23%) admit to having done so, with 61% financially affected by the pandemic and 19% seeing a reduction of income as a result, according to new research from borofree.
During this period, more than a quarter (29%) struggled to pay and budget for their outgoings. This is made worse by the fact 45% had no savings to fall back on, and of course meant 26% were not able to save any money since the start of the pandemic.
Indeed, more than a fifth (22%) have turned to Buy Now, Pay Later (BNPL), which rises to 33% for those aged 25-34, and while most BNPL services are advertised as interest-free payments over three months, more than 16% of 18-34 year olds admit that they have ended-up using BNPL to pay for purchases over a longer period with interest added.
Furthermore, 20% believe that BNPL should be “more honest and responsible about their services and that they can lead to debt”.
But the impact of this pressure and reliance on others damages much more than just our wallets. More than half (52%) of those who have struggled financially reported having issues sleeping, while 14% have said this pressure had even led them to consider self-harm or suicide.
Meanwhile, more than a third (35%) have also noticed a strain on their social life and relationships, having had to financially depend on friends and family to make it through the month.
While things may be looking up – with unemployment figures declining, and GDP rising – it remains a long road to recovery, especially for those who turned to high-cost borrowing methods to see them through the year.
That is why borofree is launching its new zero-interest, zero-fee, and zero-cost salary advance solution to provide a lifeline for hardworking Brits.
Without incurring fees or interest, users will be able to borrow up to £300 to help with everyday essentials, budgeting food shopping, and unexpected emergencies. Unlike pre-existing alternatives, borofree allows people to buy the products and services they need with gift cards through its platform.
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