Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .


71% of workers forced to borrow to pay for Christmas

71% of workers forced to borrow to pay for Christmas
  • 82% say early pay in December puts them in financial difficulty in January and 78% resort to borrowing in the new year

The majority of workers resort to borrowing to cover the cost of Christmas. Research from Hastee study finds 71% of workers in the UK and Ireland source additional funds during the festive period and 61% admit Christmas-related financial stress impacts their performance at work. This should be worrying news for employers after the Office for National Statistics reported the worst drop in UK productivity in five years earlier this year.

Almost half of workers (47%) use high cost credit options such as payday loans, credit cards and overdrafts to pay for the Christmas period which means festive spending encourages a significant number of workers to accumulate debt. More than half of workers (53%) say Christmas forces them to live beyond their means and 35% say the cost of Christmas often leaves them unable to pay their bills.

 Funding the festive season

Hastee’s research reveals 61% of workers worry about how to source money for Christmas and 18% say the closure of payday lenders has added to this worry. This highlights a widespread reliance on high-cost borrowing during the festive season caused by a lack of liquidity in workers’ personal finances.

Over half of workers (55%) work overtime to save extra money before the Christmas period compared to 48% last year, and 40% have worked more than one job at the same time to raise more funds. While employers may see this as good thing, the impact on work-life balance could be detrimental to productivity, especially among workers who push themselves to burnout.

Concerningly, 50% have cut back on home comforts including turning the heating off and using less electricity

 The lasting toll

The majority of workers (82%) say early pay in December leaves them in financial difficulty in January and 78% have had to use some form of credit in the New Year because the festive season left them short of funds. This suggests a significant number of workers are forced to borrow both sides of Christmas.

More than half (56%) have turned to high-cost credit such as credit cards, overdrafts or payday loans to get by in the new year while over a third (36%) say the impact of borrowing lasts up to three months. This highlights the fact that workers can’t put the financial stresses of Christmas away with the decorations – it lingers longer after the festive season ends.

“What’s supposed to be a time of celebration has become a stressful ordeal for workers with many feeling forced to borrow. This negatively impacts workplace productivity and this impact can last for months as workers struggle to catch up with their finances,” says Hastee CEO James Herbert.

“Wellbeing solutions that increase liquidity by giving workers access to their earnings on demand are readily available for employers to implement at zero cost. Employers benefit from improved productivity and workers get a fair chance to enjoy a happy Christmas. These solutions can also help businesses align themselves with destination employers that attract and retain talent more effectively with the range of benefits they offer.”

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post