Key Takeaways
- Pensioners (188%) feature prominently in the data, applying to borrow nearly double their monthly income on average.
- Students (111%) and unemployed people (110%) are also applying to borrow more than their monthly income, reflecting the acute pressure on those without a stable earned income.
- Disabled workers (89%) and those in temporary employment (85%) follow closely, highlighting the financial vulnerability of groups with limited or unpredictable income.
- Even full-time employees are applying to borrow 47% of their monthly income on average, demonstrating that demand for credit is not confined to those outside traditional employment.
There is a widespread assumption that having a steady income, whether from a salary, wages, pensions, or benefits, provides a degree of financial stability. Yet our latest internal data paints a far more pressured picture across every employment category we analysed.
Our analysis of loan application data between March 2025 and March 2026 reveals that loan application amounts relative to income are high across the board, and in several groups, the amount being applied for exceeds 100% of monthly earnings. The data raises a pressing question: for whom, in 2026, is an income alone enough?
| Employment Status | Average % of Income Applied For |
| Pensioners | 188% |
| Students | 111% |
| Unemployed | 110% |
| Disability | 89% |
| Temporarily Employed | 85% |
| Part-Time Employed | 67% |
| Self Employed | 62% |
| Full-Time Employed | 47% |
At the top of the table, pensioners are applying to borrow 188% of their monthly income. For those on largely fixed retirement incomes, this could point to a structural gap between what pension income provides and what everyday life in 2026 actually costs.
Students and unemployed people are in a similarly precarious position, each applying to borrow in excess of 100% of their monthly income, 111% and 110% respectively. For students, this may reflect the well-documented squeeze on living costs that maintenance loans and part-time work increasingly fail to cover. For unemployed people, it may underscore that benefits and savings just aren’t stretching far enough.
Disabled workers follow at 89%, and those in temporary employment at 85%. Part-time employees (67%) and the self-employed (62%) are also applying to borrow well above half their monthly income. Even at the foot of the table, full-time employees are attempting to borrow almost half (47%) of their monthly income on average, a figure that, on its own, would have seemed alarming just a few years ago.
What is striking about these figures is not just the scale at the top, but also the breadth across the entire table. From students and retirees, to the unemployed and those in full-time work, demand for credit appears to have become a near-universal supplement to income.
Why is this happening?
The cost-of-living crisis has been widely reported, but its effects on household finances continue to deepen. Housing costs have risen sharply, energy bills remain high, and the price of everyday essentials, from food to transport, has not fallen meaningfully for most people. Incomes, across almost every category, have not kept pace.
For pensioners, the challenge is particularly acute. Pension incomes are largely fixed, and whilst they may increase periodically, these uplifts do not always keep pace with the real-world cost increases.
For students, the picture is one of a support system that has not kept pace with reality. Maintenance loans have failed to track rises in rent, food, and transport costs, leaving many seeking credit to cover the basics of student life, not luxuries, but necessities.
The unemployed face a different but equally stark challenge. Benefit levels have not risen in line with living costs, and the gap between what the state provides and what life costs has widened considerably. For those between jobs or unable to work, credit may increasingly be seen as a way to fill that space.
For those on fixed incomes more broadly, whether due to disability or limited working hours, options for coping with rising costs are limited. Unlike a full-time employee who can, in theory, increase their hours or seek a better-paid role, many of the groups seeking higher levels of credit in this data have little room to manoeuvre.
The long-term risk
Used responsibly and sparingly, credit is a genuinely useful financial tool. It can bridge the gap between paydays, cover an unexpected bill, or manage a short-term cash flow issue. The concern arises when borrowing demand becomes a structural part of household finances rather than an occasional buffer.
When loan application amounts consistently exceed monthly income, as it does for several groups in this data, the risks increase significantly.
Borrowing addresses a short term credit need, but it is essential applicants factor in the impact of these repayments over the loan repayment period. Most applicants will look to spread their repayments over multiple months to keep repayments affordable, which in turn has an impact on their disposable income.
Debt service costs consume an ever-greater share of a fixed or limited income, leaving less available for essentials each month and making it increasingly difficult to reduce the outstanding balance. For those with limited means to increase their earnings, a sustained pattern of borrowing above their income can become genuinely difficult to escape.
What this means for borrowers
If you belong to any of the groups in this data and regularly rely on credit, it is worth taking stock of the full picture. Understanding your total debt relative to your monthly income, and whether that ratio is growing, is a useful starting point.
Free, confidential debt advice services are available, offering specialist guidance for those on fixed or limited incomes. For pensioners, checking whether any additional financial support is available can make a meaningful difference, as many people may not be claiming everything they are entitled to.
Students may be able to access extra support through their education provider, while those out of work could benefit from seeking guidance on the assistance available to them. Taking the time to review available support options can help ease some of the financial pressure.
A broader challenge that requires a broader response
The findings from our data reflect a wider affordability challenge that no single lender, employer, or individual can solve alone. Pension adequacy, student maintenance support, benefit levels, housing costs, and the price of essentials all play a role in determining whether any income is enough to live on.
What the data makes clear is that many employment groups are seeking credit worth a substantial proportion of their income. And until wider affordability pressures ease, loan applications may continue to reflect the gap between income and everyday costs. At Sunny, we believe that credit should be a tool that supports financial wellbeing, not one that undermines it. If you are considering a loan, we encourage you to borrow only what you need, ensure repayments are affordable, and reach out for support if you are feeling the strain.
Read more about loan debt help for debt support contact information.
Methodology
The data is based on an analysis of Sunny loan applicants between March 2025 and March 2026. Findings are derived from analysing borrowing patterns by employment group, using the loan-to-income mean.
