It seems many UK households have taken the opportunity to pay down debt rather than save money during the lockdown. As we could not spend money on entertainment, restaurants and going out it seems households have been able to use surplus cash to reduce credit card balances and loans.
“Outstanding balances on loans fell by £2.4bn and credit card debt by £5bn during April 2020 as consumers had less access to high street shops, less demand for petrol and could not frequent restaurants, bars or go on holiday.”
The record number of payments reduced overall debt in the UK by £7.4bn. But for the economy to recover consumers need to spend and support local businesses.
Will low consumer confidence affect recovery?