HSBC UK’s recent research sheds light on the current state of consumer confidence in debt management across the UK.
The survey indicates that consumers are generally confident in their ability to manage and review their debts. However, there is still a significant need for ongoing financial education to help bridge the gap between consumers financial goals and the resources available to them.
Key findings:
- Debt awareness: 74% of Brits understand debt consolidation, and 68% know their consolidation options.
- Financial resilience: 60% feel confident in handling unexpected expenses over the next 12 months.
- Goal achievement: 52% are confident they can achieve their financial goals for the next year.
Despite these positive indicators, the survey reveals significant gaps:
- Only 34% fully understand their debt options, and just 23% have consulted their bank for advice.
- Younger adults (18-24) show less confidence in debt manageability (37% vs. 65%) and have a lower understanding of secured vs. unsecured debt (54% vs. 70%).
Madhu Kejriwal, Head of Unsecured Lending at HSBC UK said:
“Our priority is to ensure our customers understand their financial options and make the right decisions for their personal circumstances. While many consumers are aware of their debt consolidation options, only one in three fully understands their choices and engages with their bank to explore them. This is why we have trained specialists to help our customers make better financial decisions, understand their options, and improve their financial well-being.
“Our financial support team proactively reach out to customers if we think there might be financial issues on the horizon. It’s important to us that our customers understand they can talk to us about their money worries without judgement and without it affecting their credit rating.”
Discover more information here: https://www.hsbc.co.uk/loans/what-is-debt-consolidation/
