There is no denying the fact that families across the world suffered in terms of finances during this pandemic. Some lost their jobs. Those who had businesses suffered from loss of revenues. Others even went bankrupt. Some families had to use up their savings when one or two of the family members got COVID. To make it worse, in poorer countries, some did not even have anything food on their tables. 

This is why it is understandable why some families had to borrow money from families, friends, or lending institutions to make ends meet during the pandemic. In fact, it has been a notable act of kindness for many to lend money to people who are in need during these tough times.

But, surprisingly, some people borrowed money this pandemic not for medical bills or for their family’s needs. Some just needed money to improve their homes further. And why not, homes are our priority too, given the situation.

No matter the reason, we are always free to borrow money, just as long as we can pay it back. And, especially during the pandemic, we have our own needs and personal reasons we need financial support. Because at the end of the day, we just want the best for our families during this pandemic. We want our families to be comfortable even amid the global health crisis.

Priorities: kids’ needs first

To be fair, supporting the family’s needs in the middle of a pandemic and financial crisis is the primary reason for Americans who had to borrow money. Not only did many parents lose their jobs. Right on the onset of the pandemic in the earlier months of last year, prices of goods had already peaked. This was why most families struggled with their budgets. 

CNBC reported the findings of a survey done by LendingTree, which showed that 56% of parents had incurred debt because of the pandemic situation. Some had to max up their credit cards, while others had to take out personal loans. The money from these loans was directly and personally lent, not through banking or lending institutions. Thus, no collateral was required.

Some parents had to use their kids’ college funds to use for their family’s needs, given the tight budget. Unfortunately, some parents didn’t even have college funds for their children. Meanwhile, most parents spent the money they borrowed to buy the equipment and materials their kids needed for their online classes. These included laptops, desktops, or iPad, headphones, and other furniture and supplies.

This shows how the pandemic caused financial strain to most families, that not only did they lose their means of living. In fact, distance learning has added costs to the daily expenses of families. And it’s been a challenge for parents to provide everything that their kids need.

Home improvement could be priority, too

While some parents had to borrow money because they struggled to support their kids’ online classes, some needed to secure loans for very personal reasons. 

One of them is home improvement. In an Ipsos survey conducted for Forbes Advisor, findings showed that 25% of American respondents had to borrow money for their home improvement projects. Some had to remodel, reconstruct, and renovate their homes.

Others secured a loan to pay for the medical bills of a family member who got COVID-19 or had suffered from medical issues. On the other hand, others had to borrow money to pay for their previous debts. These include overdue payments for their credit cards, student debts, and auto loans.

Some also had to get into loans to buy a new car. Given the pandemic situation, some had to get a car to keep the family safe when they needed to go out. Meanwhile, some didn’t have to buy a new car but instead repaired their cars. Auto repairs tend to be expensive, so others decided to just have their repairs via credit card or auto repair loans.

These are very personal reasons, depending on the immediate needs of the lender. They are not superficial but just the preferences and desires of families whose finances are more stable than others. This means that they have enough to support their needs, and borrowing money through loans can be a lenient financial option.

Whatever your reason is in borrowing money is not relevant, as long as you get to pay your dues on time and that you carefully manage your debts. You have the financial freedom to choose whichever loans you want, as long as it is within your means. 

Meta title: Why People Borrow Money During a Pandemic
meta desc: Many families incurred debt during the pandemic, and it was not just for any other reason. Here’s why most families borrowed money during these times.