Yolt research reports overspending by UK citizens post lockdown
By Joy Dumasia
Yolt, the smart money app, reveals in a research report that over 3 million UK adults have spent more than they can afford since lockdown restrictions recently began to ease. A further 18% anticipate that the federal return to socialising will harm their ability to manage their money well.
According to Bank of England data, Lockdown saw the UK’s opportunities to spend severely limited, which resulted in household savings volumes increasing significantly. It also saw consumers make £16.6bn of net repayments on debts including credit cards and personal loans, the highest amount repaid in over three decades.
Consumer behaviour has changed significantly with the opening of non-essential retail and hospitality venues. On average since April 12th, UK adults are saving 68% less than they were in Lockdown (from £223 a month to £71 a month) and spending 36% more on non-essential items (from £85 a month to £116 a month).
Half of all UK adults admit that social pressure can occasionally be the root cause of their overspending. More than one in 10 people find it hard to tell friends when they can’t afford something, and a similar number find they spend more when they are with friends who have more money than they do.
Pauline van Brakel, Chief Product Officer at Yolt, comments: “It’s natural as lockdown restrictions ease to want to celebrate and catch up on lost time with loved ones. However, it’s essential that people continue to keep a close eye on their money management and don’t spend more than they can afford. Our research shows that people often struggle to say no when spending in social situations and can feel pressured, particularly amongst friends that have more disposable income than they do.”
Recently, IBS Intelligence reported that Yolt Technology Services announced expanding its Account Information Services (AIS) applicability to provide enhanced data insights for UK mortgage lenders. AIS aims to facilitate the secure transmission of an individual’s transactional data across to a regulated lender with that individual’s permission.
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March 24, 2023
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