Welcome to Debt Matters, the podcast where we turn the latest UK headlines into practical insights on arrears, recovery, and cashflow. Today we’re looking at a fresh consumer confidence survey that suggests UK households are feeling bleak about their finances, with debts rising and savings under pressure and what that means for collections and repayment behaviour.

What happened

A new S and P Global survey reported that UK consumer confidence is at its lowest level in 2 years. The research points to households feeling pessimistic about their personal finances, increasingly worried about mounting debt, weaker prospects, and shrinking savings.

The main stats

The UK Consumer Sentiment Index was 44.8 in February, below the neutral 50 level that signals improving confidence.

The reading was only slightly higher than January’s 44.6, but still among the weakest results of the past 2 years.

The sharpest reported debt increases were among 18 to 24-year-olds, who the report links with the highest unemployment rate since 2020.

Why this matters for debt collection

People prioritise essentials and delay non-urgent repayments If households feel squeezed, they tend to protect rent, council tax, utilities, and food first — and everything else gets pushed back. That can mean higher early-stage delinquency across consumer credit, telecoms, and discretionary services.

More “can’t pay” cases, not “won’t pay” Rising debt plus falling savings often means customers do not have a buffer. That changes the best collections approach: more supportive engagement, better affordability checks, and realistic repayment plans — because aggressive chasing can increase complaints, vulnerability flags, and drop-off.

Younger borrowers become a bigger risk pocket The survey highlights pressure on 18 to 24s. For creditors, that’s a reminder to watch portfolios with younger demographics and products that skew younger and to get proactive with early outreach before accounts roll into harder-to-recover stages.

What to watch next

Promise-to-pay kept rate: if it drops, people are overcommitting.

Arrangement re-defaults: a rise usually means plans are unaffordable.

Contact channel shifts: more customers avoiding calls but responding to SMS or email can signal stress.

Hardship and vulnerability markers: expect more disclosures around job loss, reduced hours, illness, and caring responsibilities.

Practical takeaways

For creditors and collections teams:

Improve early-stage engagement: simple options, fewer hoops, clear “how to get help” messaging.

Use short, flexible repayment plans and review them quickly rather than locking customers into unrealistic schedules.

Make vulnerability support visible, and document decisions clearly — it reduces disputes later.

For listeners worried about debt:

Do not wait for arrears to spiral. Contact the creditor early, explain what’s changed, and ask for a plan that fits what you can genuinely afford.

List essentials first, then offer a realistic amount — even if it’s small. A workable plan beats a broken promise.

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