Despite the cost of living crisis impacting how people are spending and using money, only one in five Brits are worried about how it will impact their credit score reveals CRIF, the European digital transformation solutions provider. In fact, UK consumers are the least likely to worry about the cost of living in Europe despite the massive impact it’s having on them.
According to the CRIF whitepaper, 37 per cent of people in Europe said they worried about the impact on their credit score (excluding the UK). This rose to around half of all people in France (49 per cent), followed by Spain (45 per cent) and Italy (44 per cent).
The findings come as part of CRIF’s cross-European research, which surveyed thousands of adults in the UK, France, Italy, Germany, Austria and Spain. The results form part of CRIF’s Banking on Banks report, looking at Europeans’ relationship with their finances and their financial providers during these challenging economic times.
A difference in attitude
But why are Brits not feeling the weight of the cost of living crisis compared to the rest of Europe? You would think that following 14 consecutive interest rate rises by the Bank of England before it stagnated at 5.25 per cent, Brits would be feeling the impact. However, despite Governor Andrew Bailey saying rates have reached their peak, many UK residents don’t seem concerned.
While nearly two-thirds (63 per cent) of Europeans say the cost of living crisis has made them more mindful about getting into debt in the future, less than half of Brits (49 per cent) said they felt this way. The cultural attitudes don’t stop there. The report further highlights that 27 per cent of Europeans worry that they may no longer qualify for products and services that they previously would have. In contrast, only 19 per cent of people in the UK report feeling worried about this.
Sara Costantini, regional director for UK & Ireland at CRIF, said: “Our extensive research across Europe shows that Brits have a different relationship to credit and lending to that of their European neighbours.
“Whereas many on the continent are looking ahead to how they can bolster their finances to better withstand future economic shocks, many in Britain show less concern about their credit score or avoiding debt in the future.
“There is a clear role here for banks and lenders to ensure Brits are using credit responsibly and can afford to repay. Utilising the latest digital banking innovations will help lenders better understand their customers’ needs and provide them with insights and services that can help them improve their financial health.”