UK Consumers 'Financially Literate But Debt Dependent'
European Consumer Payment Report ranks countries by financial wellbeing
LONDON, Dec. 3, 2019 /PRNewswire/ -- UK consumers are financially literate, yet highly dependent on credit, borrowing more frequently than their European neighbours. That's according to the seventh annual European Consumer Payment Report from credit management group Intrum, which surveyed more than 24,000 consumers across Europe.
As well as identifying nervousness over the impact of a potential Brexit on personal finances, the report highlighted consumers' mixed feelings over the benefits and dangers of financial technology.
UK consumers score highly on financial literacy – 75% could match financial terms to their correct definitions, second only to Finland. However, they are heavily reliant on credit. Of the 22% who have borrowed money to pay bills over the past six months, 63% have done so on more than one occasion (almost double the European average of 38%).
Almost half (49%) say their bills are increasing at a faster rate than their income, and 35% believe worrying about this is having a negative effect on their wellbeing.
Technology is seen as an enabler by many UK consumers, with 22% using their smartphone to avoid over-consumption and 67% saying tech makes it easier to manage their finances (above the European average of 59%).
But this is a double-edged sword, with 56% concerned that the use of smartphone apps will tempt consumers into loans they cannot afford.
"UK Consumers are more financially literate than most of their European peers," said Intrum's UK MD Eddie Nott. "However, the reliance on credit to pay bills means that many don't have the reserves to cope with the financial impact of a significant life event such as job loss, illness or bereavement. These unpredictable events often lead to problem debt."
He added: "While we see consumers are keen to use smartphone-enabled technology, concerns over data security and fraud remain, along with the pressure to overspend and the temptation to borrow more than they can afford."
About the Intrum European Consumer Payment Report 2019
The report is based on data from 24,004 consumers in 24 European countries and is designed to gain insights into European consumers' everyday lives; their spending and ability to manage their household finances on a monthly basis. The local data is based on 1,000 respondents from the UK.
Read the full report www.intrum.co.uk/ecpr2019
In the UK Intrum has achieved top Investor in Customers (IIC) ratings for six consecutive years and has won a string of awards for its ethical approach. Intrum UK is a registered firm of the Lending Standards Board and the first business of its kind to achieve an ISO standard for dealing with vulnerability.
Intrum is the industry-leading provider of Credit Management Services with a presence in 25 markets in Europe. Intrum helps companies prosper by offering solutions designed to improve cash flows and long-term profitability and by caring for their customers. To ensure that individuals and companies get the support they need to become free from debt is one important part of the company's mission. Intrum has more than 8,000 dedicated and empathetic professionals who serve around 80,000 companies across Europe. In 2017, the company generated pro forma revenues of SEK 12.2 billion. Intrum is headquartered in Stockholm, Sweden and the Intrum share is listed on the Nasdaq Stockholm exchange. For further information, please visit www.intrum.com.
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