The True Cost of Debt for British Workers

A steady job used to equal financial stability, but not any more. New research reveals a growing crisis across the UK workforce: rising debt is not only squeezing household budgets but reshaping career decisions, work patterns, and the mental wellbeing of millions. For many, the 9-to-5 has become a 9-to-9.

This experience isn’t limited solely to British workers, as similar trends are also evident in the US. This article summarises the findings outlined in Zety’s survey, conducted among 1,000+ American workers, to show that their struggles may reflect a global problem.

Debt is rewriting careers, not just budgets

Debt is forcing people into roles they never planned to take. Instead of climbing a desired career ladder, many are climbing out of overdrafts. 

These trends are emerging globally. In the US, Zety’s 2025 Debt & Career Impact Report found that 37% of American workers had accepted undesirable jobs purely to manage debt, while 38% of U.S.-based individuals have picked up second jobs to help manage their debt obligation.

This mirrors the UK’s experience, where 35% are considering a career change, often driven not by ambition, as 12% are motivated to do so by the cost-of-living crisis. That shift reflects a deeper, more troubling pattern: survival over ambition. Royal London found that 5.2 million workers already hold second jobs, and another 10 million say they’d consider one if costs continue to rise.

What it means: The UK is witnessing a quiet reordering of its labour force – not driven by innovation, but by necessity. Talented professionals are underutilised, stuck in roles chosen not out of desire but out of necessity due to debt.

Financial pressure spurs urgent decisions

The cost-of-living crisis is forcing workers into hard, often unsustainable, choices. 38% of Americans surveyed by Zety said they had reduced non-essential spending, and 25% increased minimum debt payments — urgent actions driven by fear of worsening financial conditions.

These trends aren’t unique: just as tariffs drove anxiety in the US, interest rates and inflation are doing the same in Britain. Mortgage arrears among StepChange clients rose by 69% in 2024 – a direct outcome of interest rate hikes between 2021 and 2023. Credit card reliance is also increasing, with nearly half of all UK adults holding some form of consumer credit. ONS reports that 14% of those facing rising living costs are using more credit than usual to get by. 

Costs of living are also on the rise: as many as 43% of workers report that they have little or no money left for savings or holidays after their essential monthly expenses are met. This indicates a widespread lack of financial cushion, leaving a vast portion of the population vulnerable to unexpected costs or economic shocks.

What it means: Inflation may be slowing, but its legacy lingers. Workers are making financial trade-offs that can undermine long-term stability: minimum payments instead of savings, deferring loan repayments, or juggling multiple jobs.

The true scale of the UK's debt burden

Behind the statistics lies a stark divide. The UK has a household debt-to-income ratio of 118%, meaning that for every £100 earned, households owe £118.10. While mortgages dominate total debt (£1.85 trillion across the UK), unsecured debt is what hits the hardest on a day-to-day basis. The average unsecured debt per adult is £4,232.

The UK isn’t alone in facing this financial squeeze. In the United States, the scale of personal debt is similarly stark. According to Zety’s 2025 survey, nearly half of American workers owe at least $25,000 (approx. £18,500), and 1 in 5 owe more than $100,000 (approx. £74,000).

While UK households face an average unsecured debt of just £4,232 (approx. $5,730), the broader picture reveals a shared struggle across both nations: growing debt burdens are limiting financial flexibility, delaying life plans, and reinforcing inequality. Whether in pounds or dollars, the story is the same — high debt levels are leaving workers with fewer choices and greater financial vulnerability.

What it means: This two-tier system limits opportunity. Those trapped by short-term debt can't afford to think long-term, professionally or financially.

Conclusion: Britain’s workforce is trapped

Rising debt and cost of living, combined with stagnant wages, are forcing many UK workers into survival mode. For many, ambition is on pause, replaced by anxiety. Career plans are set aside for side hustles. Productivity is taking a hit. The broader economy is also feeling the strain.

Employers and policymakers alike must act. Whether through fairer pay, debt education, or more strategic support, the time to lift the burden is now.

Let ambition, not anxiety, drive the future of work.

Methodology & Sources

A comparative US perspective has been provided via Zety’s 2025 “Debt & Career Impact Report,” based on a survey of 1,005 American workers conducted in April 2025.

All other findings and statistics mentioned in this article have been sourced from publicly available UK data and respected organisations:

• StepChange Debt Charity, "2024 Personal Debt Trends and Statistics"
• Royal London, "Cost of living crisis leaves millions taking on second job"
• Birmingham Live, “Brits turn to second jobs and side hustles as monthly income no longer enough”
• House of Commons Library, "Household debt: statistics and impact on economy"
• FinCap, "Financial well-being: the employee view"
• Nielsen Consumer LLC, "UK Consumer confidence up two points in June to -18"
• Office for National Statistics, "What actions are people taking because of the rising cost of living?” 
• Affinity Connect, "New research reveals the workplace impact of money worries"
• International Accounting Bulletin, "Rising cost-of-living prompts 40% of UK workers to consider career change"
• Employers for Carers, "Money worries affect the productivity of one in four UK employees"
• Stoke on Trent Live, "UK's cost-of-living crisis drives 40% of Brits to consider second jobs, survey reveals”
• Lancaster University, "Shifting challenges? How cost-of-living pressures are impacting workers in 2025” 

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