Canada Life: 44% of furloughed adults look to borrowing

A third of the furloughed adults surveyed have used property wealth to boost their finances.

Canada Life: 44% of furloughed adults look to borrowing

An estimated 44% of currently furloughed adults have either borrowed, or considered borrowing, money on credit cards throughout the pandemic, according to research from Canada Life.


The data also found that 42% of furloughed adults have borrowed or have considered borrowing money from family or friends, and 41% either have or have considered taking out a loan.

However, 34% were using property wealth to boost their finances during furlough.

The most common way of boosting finances was borrowing money on credit cards, with 44% saying they have considered or done this.

This was closely followed by borrowing money from family or friends (42%), and taking out a loan (41%).

Over a third (34%) of individuals on furlough have remortgaged, or considered remortgaging, their property.

This is particularly the case for younger workers, with 49% of 18 to 34-year-olds having considered or done this, compared to 36% for 35 to 54-year0olds, and just 5% for those aged 55 and over.

Alice Watson, head of marketing, insurance at 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 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.”