Nine Million people forced to borrow to survive the pandemic
Covid-19 has impacted millions of companies who manage a massive number of employees, those employees saw their hours, wages, and even their contract of employment cut.
This leads to those affected unable to pay their bills, mortgages, and direct debits. Cut of hours, wages and work caused the bank to be overloaded with approved overdraft requests from those affected. The unfortunate ones are those who didn’t get their overdraft approved and loaned from elsewhere for a ” payday loan ” which comes with a significant interest increase difference that the banks offer. ” A Short Fix ” is exactly what a payday loan is, especially in this pandemic, the high-interest rates will leave you with even less money the next payday.
Source: BBC NEWS
Nearly nine million people had to borrow more money last year because of the impact of coronavirus, government figures show.
Since June last year, the proportion of workers borrowing £1,000 or more had increased from 35% to 45%, said the Office for National Statistics.
Self-employed people were more likely than employees to borrow money.