Over the past decade personal income growth in the UK has stagnated and inflation has eroded disposable income. Borrowing has been a real driver of growth in consumer spending, in spite of concerns over the strains that debts are placing on household finances. At the same time, while some consumers have been motivated to put money to one side, in anticipation of more tough times ahead, others have been less able than ever to build up a buffer.
This report utilises survey responses from more than 2,446 consumers, across 2017 and 2018. It looks at saving rates and how these are changing, at how common borrowing is, where consumers are borrowing from and how manageable their debts are. Most crucially it evaluates how consumer savings, debt levels and access to credit impact what they spend their money on, and particularly how it is causing them to reduce expenditure on their homes.
3. Executive Summary
5. Financial Security
6. How Difficult Are Bills And Commitments?
7. How Difficult Are Rent/Mortgage Payments?
8. How Much Interest Are Consumers Paying?
9. Expectations For The Future
11. Who Do Consumers Currently Owe Money To?
12. What Have Consumers Borrowed To Fund?
13. Borrowed To Fund - Change On 2017
14. Borrowing Drivers
15. Borrowing Drivers - Change On 2017
16. Credit Card Debt And Burden Of Payments
17. Use Of Overdrafts
18. Personal Loan Debt And Burden Of Payments
19. Personal Finance Agreements
20. Burden Of Personal Finance Agreements
21. Income, Saving And Spending
22. Income Frequency And Impact On Spending
23 Importance Of Benefits And Tax Credits
24. How Much Do Consumers Save?
25. What Are Consumers Saving For?
26. Are Loans/Debts Making Consumers Cut Back?
27. In What Areas Are Consumers Cutting Back?
29. What Do Consumers Plan To Spend On?
30. How Will Consumers Pay For Big Purchases?