Coronavirus: Brits pushed further into debt in lockdown

Abigail Fenton
·2 min read
(Michael Longmire/Unsplash)
Photo: Michael Longmire/Unsplash

More than one in 10 Brits have been pushed further into debt during the COVID-19 lockdown period, research suggests.

13% of UK adults said they have taken on additional debt during the lockdown period, according to a survey by comparison website KnowYourMoney.

This has particularly affected young people. The number of those that have taken on additional debt almost doubles to a quarter in the 18 to 34-year-old age group.

The survey of over 2,000 UK adults found the coronavirus crisis has had a negative effect on almost 70% of people’s finances.

Because of this almost a third (28%) are now suffering from anxiety about their financial situation, the survey found.

A third Brits have seen their household income decrease as a result of the pandemic, and almost as many (31%) have seen a personal income decrease.

READ MORE: Coronavirus: UK national debt nears £2tn for first time

The research also found almost half (48%) of consumers do not think they have been diligent with their finances since the pandemic began.

Over a quarter (26%) of Brits feel they could have saved more, while just under a quarter (23%) said they have spent too much on online shopping.

“It is no secret that the coronavirus pandemic has caused financial hardship for millions of Britons. Indeed, our research illustrates that seven in 10 people have been adversely affected by the crisis, which has sparked widespread financial anxiety,” said John Ellmore, director of KnowYourMoney.

READ MORE: Coronavirus — Debt is the 'sleeping giant' of problems caused by COVID-19

“Crucially, consumers must not be paralysed by fear or bury their head in the sand — now is the time to analyse one’s finances and assess where money could be saved.

He added: “What’s more, if financial pressures become too much or debts begin spiralling, charities such as StepChange are on hand to offer guidance to help people get their finances back on track.”