Furloughed workers relying on credit cards, family and friends, and loans

As the furlough scheme comes to an end this month, research from Canada Life has revealed how currently furloughed workers have boosted their income throughout the pandemic. The most common way of boosting finances was borrowing money on credit cards, with two in five (44%) saying they have considered or done this. This was closely followed by borrowing money from family or friends (42%), and 41% who have or have considered taking out a loan.

The findings also reveal that workers on furlough have been looking to use their property wealth to boost their finances. Over a third (34%) of individuals on furlough have remortgaged or have considered remortgaging their property to unlock additional income. This is particularly the case for younger workers, with 49% of 18-34-year-olds having considered or done this, compared to 36% for 35-54-year-olds, and just 5% for those aged 55 and over.

Alice Watson, Head of Marketing, Insurance, Canada Life said “The furlough scheme has provided much-needed support to millions of workers across the country. However, with fragile finances, many have had to consider other sources of income to boost their incomes, whether that be turning to friends and family, looking at forms of credit or accessing the wealth from property.”

“As we navigate through the pandemic, it is likely many people will feel the additional financial strain as the furlough scheme draws to close this month. Property wealth is playing an increasingly important role in financial plans. Anyone considering accessing their property wealth should speak to a financial adviser, whether that be remortgaging or equity release. Given the market offers a huge range of choice and flexibility, contacting a financial adviser is a sensible first step. These professionals will be able to offer holistic advice and tailor solutions to each individual’s needs.”

Ways to boost finances during period of furlough