New Report Reveals the True Cost of Debt for British Workers
London, UK – In today’s fast-paced and ever-changing job market, a steady job once meant stability. However, for millions of workers in the UK, it simply means staying afloat. The True Cost of Debt for British Workers Report, released today, paints a stark picture of financial struggle and its impact on work and wellbeing. The study, conducted by Zety, reveals that rising debt is not only squeezing budgets, but also redefining career choices and taking a toll on mental health across the UK workforce.
According to the report, a significant number of workers in the UK are experiencing financial pressure and its consequences:
– 37% of American workers have accepted jobs they didn’t want in order to reduce debt, similar to 35% of British workers who are considering career changes due to financial pressure.
– 38% of U.S. respondents have taken on second jobs, echoing the 5.2 million Britons who are already juggling side gigs to make ends meet.
– 43% of UK workers report having no money left after covering essentials, while 14% rely more heavily on credit.
“Debt is no longer just a balance sheet issue, it’s a workforce issue,” said Maciej Tomaszewicz, CPRW and career expert at Zety. “People are climbing out of overdrafts instead of up career ladders.”
The Mental and Professional Toll of Rising Debt
The report reveals that the rising costs and debt burdens are leading to urgent, often unsustainable, lifestyle changes for workers in both the UK and the U.S. In the UK:
– Mortgage arrears rose by 69% in 2024, driven by years of interest rate hikes.
– Credit card usage is surging, with nearly half of UK adults carrying some form of unsecured debt.
– ONS data shows that 14% of those hit by cost-of-living increases are relying more on credit to manage day-to-day expenses.
In the U.S.:
– 38% of workers have cut non-essential spending, while 25% are increasing debt payments, often at the cost of savings or mental health.
– Nearly half of American workers owe at least $25,000 (£18,500), with 1 in 5 owing more than $100,000 (£74,000).
Meanwhile, the UK’s household debt-to-income ratio stands at 118%, and the average unsecured debt per adult is £4,232. This has resulted in fewer choices, higher stress, and a growing number of workers trapped in roles they never planned to take.
A Global Struggle, A Local Alarm
The pressures outlined in Zety’s report are not isolated to one side of the Atlantic. In the UK, 12% of workers considering a career change say the cost-of-living crisis is their primary motivator. Additionally, 10 million more say they would consider a second job if financial pressures continue.
“Whether you earn in pounds or dollars, the reality is the same,” Tomaszewicz added. “Financial stress is shaping how people work, live, and plan for the future. It’s no longer simply about jobs, it’s about survival.”
The Way Forward: Reclaiming Ambition
Zety’s findings are a call to action for UK employers, career advisors, and policymakers. The report suggests the following steps to address the growing crisis:
– Tackle wage stagnation by aligning pay more closely with inflation and living costs.
– Offer financial wellbeing programmes to help employees manage debt.
– Foster career mobility, not just retention, so that talent isn’t wasted in survival-mode roles.
“Work should offer growth, not just a way to pay off yesterday’s bills,” Tomaszewicz said. “If we want a resilient, future-focused workforce, we need to address the root causes of this crisis.”
For more information on the True Cost of Debt for British Workers Report and its findings, please visit https://pressat.co.uk/.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.