Consumer confidence rises but debt divide widens

The gap between the UK’s wealthiest and poorest consumers is widening, according to a survey of 20,000 European and 1000 UK consumers by credit management group Intrum.

The European Consumer Payment Report is an annual survey across 20 countries found only 48 per cent of the UK’s low-income consumers are confident they can pay all of their bills on time, and almost two thirds of those who reported missing a bill payment said it is becoming a regular occurrence for them.

The report found that despite rising confidence, there is a widening debt divide. Financial habits and education are key factors in money management. Whilst there is also a rowing trust in AI, paired with more cautious online spending.

For leaders in credit risk, consumer finance, and banking, this signals a turning point: while some consumers are back on track, younger generations face unique vulnerabilities that warrant tailored financial products and proactive support. This is despite the fact that more UK consumers are more positive about their financial futures than in the past, with almost three quarters able to pay their bills, and increasing numbers saying they can afford evenings out and holidays.

The report also found that 72% of UK consumers can pay all bills on time with only 53% of low-income consumers could cover a one-off cost of £350. 69% say they have enough money to provide for their families and almost four in ten (38%) say high living costs have had a permanent negative effect on their financial wellbeing.

A quarter (26%) say their mental health has suffered as a result.