Credit, Collections & Insolvency News
Six in consumes are feeling optimistic about their finances amidst Covid-19 pandemic with nearly half of consumers are staying positive after lowering their spending due to lockdown according to new research by Topcashback.co.uk
The research found that as stores reopen, the fashion industry may take another big hit as 69% of consumers are consciously spending less on clothing. Previous research found that sentiment towards their finances before Covid-19, the majority (80 per cent) felt optimistic about their bank accounts. When queried how they view their finances at present, nearly two-thirds (60 per cent) still claimed to be remaining positive, and one in 10 (12 per cent) feeling pessimistic.
Whilst those who were optimistic about their financial futures, nearly half (49 per cent) were spending less money while in lockdown. A similar number (47 per cent) said their positive outlook was due to feeling secure in their employment – which is both reassuring given the daily news on huge job losses.
Half (50 per cent) of consumers believe their financial circumstances are now looking different to before the pandemic– yet this is not necessarily a negative.
A fifth (20 per cent) of people said they are spending more money since lockdown. This could be due to several things such as increased grocery bills, or investing more money into their homes (analysis showed a rise in sales year on year in the Home and DIY since lockdown).
If there was any way that consumers could have prepared themselves for an event like the Covid-19 lockdown, nearly a fifth (23 per cent) would have put more money into their savings each month. However, 45 per cent of Brits felt there was nothing that they could have done to prepare their finances for this – which could be a reflection of those who feel they have yet to be financially affected.
Adam Bullock, UK Director of TopCashback.co.uk said “It’s encouraging to see a percentage of people feeling optimistic about their finances, despite the current climate. However, it’s also important to remember that we, as an entire population, may be feeling the effects of the pandemic for years to come.”
“Whilst every financial situation is particular to the individual, as a money-saving platform, we would always encourage people to save money where and when they can. Now is a great time to be analysing your finances so that when normal returns (if ever that happens) you will hopefully be feeling some of the benefits of learned behaviours.”