The True Cost of Debt for British Workers Report, released on Thursday 31 July, 2025, has revealed a concerning reality for millions of UK workers. In the past, having a steady job provided a sense of stability. However, this is no longer the case as rising debt levels are greatly impacting the financial and mental wellbeing of workers across the country.
The report, conducted by Zety, highlights the significant effects of increasing debt on career choices and overall job satisfaction for British workers. According to the study, debt is no longer just a financial issue, but a pressing matter for the workforce as a whole.
One of the most alarming findings of the report is that 35% of British workers are considering a change in their career paths due to financial pressure. This mirrors the 37% of American workers who have accepted jobs they did not want in order to reduce their debt. Additionally, 38% of US workers have taken on a second job, while over 5 million Britons are already juggling multiple side gigs to manage their finances.
Maciej Tomaszewicz, a Certified Professional Resume Writer and career expert at Zety, emphasizes the severity of the situation, stating that “People are climbing out of overdrafts instead of up career ladders.” The report also highlights the detrimental effects of debt on mental health, as workers are forced to make unsustainable lifestyle changes in order to keep up with rising costs and debt burdens.
In the UK, mortgage arrears have risen by 69% in 2024 due to years of interest rate hikes. Credit card usage is also on the rise, with nearly half of UK adults carrying some form of unsecured debt. The Office for National Statistics (ONS) reports that 14% of those affected by cost-of-living increases are relying more heavily on credit to cover daily expenses.
In the US, 38% of workers have cut back on non-essential spending, while 25% are increasing their debt payments at the expense of their savings or mental health. The report also reveals that nearly half of American workers owe at least $25,000 (£18,500), with 1 in 5 owing over $100,000 (£74,000).
These challenges are not unique to one side of the Atlantic. In the UK, 12% of workers considering a career change cite the cost-of-living crisis as their main motivation. Additionally, 10 million more workers state that they would consider taking on a second job if financial pressures continue.
Maciej Tomaszewicz stresses the urgency for action, stating that “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 report serves as a call to action for UK employers, career advisors, and policymakers to address the root causes of this crisis.
Zety’s recommendations include aligning pay more closely with inflation and living costs, offering financial wellbeing programs, and promoting career mobility to prevent talented workers from being trapped in survival-mode roles.
It is clear that the issue of rising debt is a global struggle that demands local attention and action. As Tomaszewicz states, “If we want a resilient, future-focused workforce, we need to address the root causes of this crisis.” The True Cost of Debt for British Workers Report serves as a wake-up call for the country to prioritize the financial wellbeing of its workforce and promote a future of ambition and growth.
