Summary: A recent KIS Finance survey has revealed some shocking statistics on people’s financial concerns relating to lockdown restrictions easing and the pressure to socialise again.
•38.1% of people are concerned over pressure from friends and family to go out and make the most of being out of lockdown when they can’t afford it.
•52.8% of those aged 18-24 are fearing post-lockdown social pressures after being one of the groups most affected financially by the pandemic.
•34.3% of people are worried about losing their jobs in the coming months. This is either due to their workplace not surviving after lockdown or being made redundant when the furlough scheme ends in September.
•People living in the South East and specifically in London, are the most concerned about the ability to afford socialising after lockdown and the risk of losing their jobs when restrictions ease.
•14.1% of people are concerned over having to live off of a lower income than before the pandemic.
•11.2% of people are concerned over all payment holidays ending in July.
Nearly 40% are concerned about being able to afford socialising after lockdown
Concerns over social pressure by age:
18 - 24: 52.8%
25 - 34: 44.9%
35 - 44: 47.7%
45 - 54: 34.0%
55 - 64: 27.9%
65+ : 19.5%
The survey revealed that 38.1% of people are concerned over pressure from friends and family to socialise and make up for what they’ve missed over the past year. People are worried about being pushed into going on holiday, day trips, and meals out when they can’t afford it.
This feeling is shared particularly by people aged 18-24 with 52.8% of this group citing pressure to socialise when they can’t afford it as a concern of theirs.
This figure remains high in the 25-34 and 35-44 age groups, with the level of concern reducing as people get older.
For 14.1% of people, this is due to having to take a salary cut over the past year, but other reasons include:
•The cost of living increasing, i.e. taxes and shops increasing prices on food and clothes etc. to cover any shortfall caused by the pandemic.
•Paying off loans and credit cards that were taken out because of the pandemic.
•Rising rent and utility bills.
•Benefit cuts and the end of the uplift in Universal Credit.
Concerns over social pressure by area:
South East England: 47.8%
Northern England: 32.7%
Northern Ireland: 31.7%
South West England: 28.9%
Concerns over mounting pressure to socialise after lockdown when finances are tight are particularly high in the South East and especially in London.
These areas have faced consistent financial difficulties since the start of the pandemic.
For more detailed information on this, please see the full report.
Holly Andrews, Managing Director of KIS Finance says:
“Living under constant restrictions has been difficult for almost everyone at some point over the last year and a lot of us are desperate to see family and friends, as well as go on holiday and make up for what we’ve missed. However, it’s important to remember that not everyone will be able to keep up and be able to afford the same level of socialising as before the pandemic. Young adults have been particularly affected by reduced incomes and the need for increased borrowing, and they’re also the age group feeling the greatest pressure to make the most of life after lockdown.
As much as you may want to go out and socialise, it’s important not to let yourself get into any further debt to fund holidays and days out. Now’s the time to create a budget and work out a debt repayment and spending plan for the coming months. Carrying debt for a long time, especially as a young adult, can really damage your credit score and affect your ability to obtain a mortgage in the future. Paying off any debt accumulated over the pandemic should be a priority as soon as you can afford to do so.”
Fears over job loss when restrictions lift and furlough ends
Concerns over job loss by age:
18 - 24: 39.3%
25 - 34: 51.7%
35 - 44: 50.5%
45 - 54: 24.0%
55 - 64: 14.9%
65+ : 7.1%
Another major concern that people are experiencing is the possibility of losing their jobs over the coming months, with 34.3% of respondents sharing their worries over this.
This is split into 16.3% being concerned over losing their job when the furlough scheme ends in September, and 18% worrying that the company they work for won’t survive when restrictions start to ease.
Again, these concerns are mainly being shared by young adults and people living in London and the South East.
Concerns over job loss by area:
South East England: 46.8%
Northern Ireland: 34.2%
Northern England: 28.8%
South West England: 21.2%
Central England: 18.8%
Concerns over payment holidays ending in July
11.2% of people are concerned about how they’ll continue to make payments once payment holidays end later in the year.
This figure shoots up to 20.2% of those aged between 18 and 24, again highlighting the financial struggles that young adults in particular have faced over the last year.
Concerns over payment holidays by age:
18 - 24: 20.2%
25 - 34: 15.3%
35 - 44: 17.9%
45 - 54: 5.6%
55 - 64: 4.4%
65+ : 3.0%
Holly Andrews continues:
“Payment holidays have been essential to so many of us over the last year, and people who have lost income are going to struggling when they come to an end in a few months’ time.
If you’re worried about how you’re going to cope once payment holidays end, then it’s very important that you speak to your lender as soon as possible. If you don’t speak to your lender then your repayments will restart automatically, potentially with higher monthly repayments to make up the shortfall.
Lenders are required to work with you to find a suitable repayment plan based on your circumstances. They may be able to come up with a new plan which involves reducing your monthly payments, extending the term of your loan, and waiving any fees or charges to make it more manageable. After all, it’s in their best interest to make it easier for you to pay the loan back, so make sure you speak to them if you think you’re going to struggle with payments.”
Notes to Editors:
•Full report: https://www.kisbridgingloans.co.uk/finance-news/nearly-40-pe...
•All figures, unless otherwise stated are from a survey conducted with The Leadership Factor. The total sample size was 2,000. Fieldwork was undertaken between 16th March 2021 and 19th March 2021. The survey was carried out online.
This press release was distributed by ResponseSource Press Release Wire on behalf of KIS Finance in the following categories: Leisure & Hobbies, Personal Finance, Business & Finance, for more information visit https://pressreleasewire.responsesource.com/about.