Households’ Financial Wellbeing Takes a Plunge in August

The IHS Survey

The IHS survey hinted that, of the reasons people are reluctant to spend, one could be that fewer people have access to unsecured debts, such as credit cards and overdrafts.

Since the start of the pandemic, a ‘saving spree’ caused millions to pay down old debts, just as banks started to tighten up on lending criteria. The IHS report comes just days after another consumer survey by financial giant EY’s ‘ITEM Club’ reported that the amount of money Brits borrowed on the likes of credit cards and personal loans was expected to dip to its lowest levels in over 25 years, due to cautious behaviour from banks and borrowers alike as the country searches for a way out of its economic crisis.

Overall, the data hint at some worrying trends when put in the context of the significant recession facing the UK. Although lockdown measures are looser; households are spending less, earning less and unsure about their jobs, all of which have the ability to add severe friction to the pace of the economic recovery

Said Mr Cooper

Taking everything into consideration, it is perhaps no surprise to hear that, compounding the survey’s dismal outlook, people reported feeling more uncertain about their financial futures this month than at any point since the 2011 financial crash.

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