One fifth (18%) of teachers have been forced to rely on buy now, pay later (BNPL) payment options to afford their weekly shop, according to new research from responsible lender, Creditspring.
More than a quarter of teachers (26%) say they wish they’d never used BNPL options, with 14% admitting they’d were unable to meet repayments and that this pushed them into debt.
The research also indicates that finances of teachers across the UK are in a perilous state. More than a third (34%) have run out of savings and are reliant on credit to make ends meet, whilst 23% have less than £200 left in their savings to act as a buffer against rising costs.
For many teachers, finances are balanced on a knife edge – more than half (52%) say an unexpected expense of £100 would be enough to send them over the edge. Almost one in five (16%) have taken on additional part-time work in a bid to improve their financial stability, and around a third (30%) have been forced to turn to short-term, high-cost loans to make ends meet during the last three months.
The research reiterates how bleak many teachers consider their financial future – nearly six in ten (57%) admit they’re terrified about their financial position, 41% say they will struggle to afford rent or mortgage payments within the next six months, and over a quarter (26%) believe their finances will become so stretched that they will be reliant on food banks.
Given the stark figures, it’s no surprise that two in five (40%) of teachers are considering a move into the private sector in search of a pay increase.
Neil Kadagathur, CEO and Co-Founder of Creditspring said “It’s hugely concerning that those tasked with educating the next generation – one of the most vital jobs in our society – are themselves amongst the most financially vulnerable. They shouldn’t be reliant on credit products such as BNPL, and risking long-term future debt, simply to afford essentials such as food.”
“Teachers’ finances are in a perilous position, with many believing that things are only going to get worse over the next few months as savings pots dwindle away to nothing and they’re faced with no option except to seek credit to survive or relying upon food banks.”
“Lenders have a key role to play in supporting the most vulnerable members of society – at Creditspring we serve near-prime borrowers who struggle to access mainstream credit. Unfortunately, this includes many teachers and other key workers. Our mission is to provide people with affordable credit options that remove the risk of debt spirals, offer the tools to help people build their credit profiles, and improve future access to mainstream, low-interest forms of credit.”