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GFT research highlights Brits sleepwalking into a debt disaster
The increased cost of living and high inflation means , with 39% admitting to not having any method of tracking their spending.
This data comes from GFT's latest , a bi-annual assessment of consumer banking habits.
Richard Kalas , said, "This mounting debt is understandably becoming a real concern for consumers. We know banks have introduced entire packages of support to help people manage their finances over the last couple of years, but it's clear customers aren't aware of them. There's a huge opportunity here for banks to better demonstrate the help they can offer and become trusted partners to their customers."
The research also uncovered growing reliance on credit facilities to cover everyday spending. In fact, , with almost a third (32%) of those using it for basic expenses such as groceries.
When it comes to debt management, a quarter (25%) of 35-44-year-olds have to pay off and consolidate their finances.
Worryingly, however, 18% of people do not currently know what the repayment terms or APR of their credit card(s) are.
But it's not just credit card debt that's rising; . 45% of those surveyed are using their overdraft before the end of the month, and one in four are falling into an unarranged overdraft facility, incurring significant charges.
Despite these debts, , with almost half (47%) considering credit card debt to be far more serious.
Overall, banks have increased their support for customers since the cost of living crisis hit, with dedicated packages to help people facing financial difficulty. But the research shows consumers want more.
In fact, nearly a third (32%) of customers are currently unsure what products and services their bank offers to help them with their money. And manage their credit card and overdraft debts.
As such, an increasing number of people are turning to budgeting apps and buy-now-pay-later (BNPL) facilities to manage their spending, with one in five (20%) of 18-24-year-olds using BNPL services to ease financial challenges.
View original content: https://www.prnewswire.co.uk/news-releases/gft-research-highlights-brits-sleepwalking-into-a-debt-disaster-302180024.html