GFT research highlights Brits sleepwalking into a debt disaster

GFT United Kingdom England

also uncovered growing reliance on credit facilities to cover everyday spending. In fact, consumers with a credit card are using it almost twice a week, 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 opened other lines of credit 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; an overreliance on overdraft facilities is growing too. 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, most people aren't concerned about using their overdraft facilities, with almost half (47%) considering credit card debt to be far more serious.

Support from banks

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 a further 14% would like specific support to help them 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.

This press release is also available for download via the GFT newsroom 

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