There are some early signs that people are coming to terms with the financial costs of the lockdown – after four consecutive weeks in which the percentage of households reporting a negative financial impact from COVID-19 remained in a narrow band between 57% and 61%, we saw a drop to 53% in the latest survey.
At the same time, the proportion of impacted consumers that expect to miss bill payments is trending favorably—down to 60% in week five from 70% in week one.
However, over 60% of impacted consumers say they have reduced their discretionary spend.
People have been reluctant to reach out and raise their financial concerns with their lenders. Of those consumers who are worried about their ability to meet their financial obligations, only half have reached out to their lenders to discuss what options may be available to them - this despite the fact that 42% of those who haven’t, either don’t know how they’ll make up the gap in their budgets or know that they would like to restructure their debt in some way to do so.