Brits have managed to stay on top of finances despite cost-of-living crisis
Brits have managed to conserve cash over the past year despite the cost-of-living crisis, new research has shown.
Data from credit marketplace ClearScore reveals that average bank balances have increased by six per cent in the past twelve months and overdraft usage has fallen by seven per cent over the same period.
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Powered by open banking technology and based on 560,000 UK bank accounts, the analysis also found that missed credit card repayments were down by 13 per cent in the last three months, while late loan repayments were down 10 per cent.
“Overdraft usage is an important indicator of affordability and good financial planning in general,” said Justin Basini, chief executive and co-founder at ClearScore. “Many of our lender partners will use this in their risk assessment, so to see this falling is positive news for borrowers.”
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Over half (52 per cent) of consumers have also made small changes to their day-to-day spending habits in the last 12 months, such as spending less on groceries (32 per cent) and non-essential items (49 per cent) and cutting down on energy use at home (32 per cent).
“Britons have shown great resilience in the last twelve months in dealing with rising costs and making the necessary changes to keep their heads above water,” Basini added.
“With inflation now beginning to fall, we are hopefully starting to see signs of let-up from the cost-of-living crisis that has gripped the nation. However, with finances still under pressure, largely due to persistently high food and energy prices, consumers need to continue to spend cautiously and stay on top of their finances.”
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