Quarter of Workers ‘Made Bad Debt Decisions During the Pandemic’

Nearly one in four people employed at large companies in the UK feel that they made at least one bad decision relating to their personal debts over the course of the pandemic.

That’s according to research carried out for the insurance company Aviva, which also found that just less than a third (29 per cent) of corporate employees resorted to borrowing money to replace lost income during the Covid crisis.

Strikingly, while 24 per cent of all workers feel they made a bad debt decision during the crisis, that figure rises to 51 per cent among company employees aged between 18 and 24.

Aviva has taken those findings to suggest that so-called ‘Gen-Z’ employees are among the least financially resilient of any specific age group in the UK.

The financial circumstances of workers in the 25 to 39 age bracket are generally better than those of the youngest adults but 36 per cent of these so-called ‘Gen-Y’ individuals also told Aviva’s researchers they made one or more mistake in dealing with their debts in recent months.

Despite all respondents to the research being employed, 30 per cent were nonetheless concerned to some extent that their money might soon run out.

A majority (60 per cent) of the people polled said they feel as if their finances effectively control their lives, and 39 per cent said their money worries impact their mental health.

It is well understood that the pandemic prompted profound changes in the ways in which people throughout the UK live their lives and the landscape of personal finance has been significantly impacted.

For some people the pandemic made it easier to save money each month but for millions of others it has meant being furloughed and struggling to get by on the basis of a substantially reduced income.

“The Covid-19 experience has fundamentally altered our relationship with money, work and health,” said Laura Stewart-Smith, head of workplace savings and retirement at Aviva.

“While some employees have been able to boost their financial wellbeing by saving more, with large swathes of the economy closed, others have found their income reduced and are facing larger debts or having to provide support for dependent family members,” she added.

If you live anywhere in Scotland and you are worried about your personal debts then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.