More than half (53 per cent) of Brits have improved their financial planning during Covid-19, new research has found.
Indesser – a joint venture between the Cabi-1net Office and TDX Group – has revealed that 43 per cent of consumers have repaid more debt than ever before and a third (36 per cent) have saved more for retirement.
Overall, 60 per cent of people feel they are in control of their finances, according to the research.
Almost three quarters (74 per cent) of those surveyed said their income has either increased or stayed the same since the pandemic began, with average spending down on commuting, restaurants and recreation during the lockdown.
In contrast, 47 per cent of people worry about their finances every day, a rise of four per cent since June 2020.
And almost a quarter (24 per cent) feel incapable of managing their finances, up from five per cent since last summer.
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“The impact of Covid-19 on people’s finances continues to be highly complex and diverse,” said Rhona Parry, chief executive of Indesser.
“While it’s very encouraging to see people paying greater attention and exercising more autonomy over their personal finances, there is also a less positive and more alarming trend developing.
“The pandemic has exacerbated the sense of a two-tier debt society, where a significant minority are struggling to keep on top of their bills and effectively manage their finances.
“In this environment, where the end of forbearance measures looms and unemployment is expected to surge, it’s vital for creditors to use informed data to identify financially vulnerable individuals and treat them with empathy and compassion.”