Running low: Lawyers turning to credit cards
The proportion of lawyers saying they regularly use credit cards because they have run out of money has more than doubled in a year to almost half, according to a report on financial wellbeing in the legal profession.
It said six out of 10 lawyers felt pressure to spend money beyond their means, a proportion which rose to three-quarters for junior lawyers.
Eight out of 10 junior lawyers worried about money frequently, with “peak financial concerns” felt among solicitors with up to two years of post-qualification experience (PQE).
Wealthbrite, which provides financial skills training, surveyed 500 lawyers for the 2024 edition of The Financial Wellbeing in Law Review. Trainees, apprentices and solicitors with up to four years of PQE were referred to as junior lawyers.
One in five lawyers in 2023 reported using credit cards because they had run out of money, in line with the national average of 20%. But the figure for 2024 was 48%.
Researchers commented: “This may be a continued hangover from the cost of living crisis – lawyers are committed to their lifestyles, which have become more expensive. Despite inflation coming down, tax rises and affordability continue to be a concern.”
Only a third of lawyers said money worries could affect their performance at work but seven out of 10 reported “at least one sign of poor mental health in relation to their finances that could affect their ability to function at work”.
The most frequent sign of poor mental health was anxiety (50%), followed by lack of motivation (23%), sleepless nights (18%) and depression (9%).
Six out of 10 lawyers ranked their confidence with personal finances as average or below, with seven out of 10 juniors saying it was below average.
On the positive side, when asked how much they expected to save in 2024, 49% of lawyers said more than last year and 18% the same.
Researchers said law firms needed to rethink how they engaged their staff on issues of financial wellbeing, with most of those surveyed not having access to financial wellbeing support at work. Of those that did, only three in 10 were actively using it.
“Existing support isn’t cutting through, and in a demanding work environment where email fatigue can quickly set in, learning by doing makes the training stand out and the lessons stay in.
“Real engagement demands new methods of delivery, like workshops, simulations and digital learning platforms.”
Researchers said law firms should also adopt a “transparent approach to communications on pay and rewards”, moving away from “impersonal emails”.
Carla Hoppe, founder and CEO of Wealthbrite, said: “Financial wellbeing isn’t just about doing the right thing—it’s about survival and success in a hyper-competitive market.
“Stressed, financially insecure lawyers are less productive and more likely to leave. That’s a risk no firm should be willing to take.”
She added: “The legal profession is at a crossroads. Firms need to create a workforce that is not only resilient but empowered to drive results and impact the bottom line. That starts with financial confidence.”
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