How Consumers Struggling With COVID-19 Impact Pay Bills
The COVID-19-related economic crisis has created an unexpected situation where consumers and businesses are struggling to stay strong on their feet and not give up. This article is mainly about the challenges associated with bill payments, but it’ll also help you with payment companies such as SmartDebt in the UK.
World Economy Crisis
The global economy is faced with the COVID-19 recession. 10 years ago, when the world was experiencing another recession, people were struggling with financial challenges and businesses were fighting to stay afloat.
The Bank of England (BoE) has recently reported that the average income of people utilising up to 25% of their credit cards accounted for £1.900 on a monthly basis. This can be compared to an average income of £1.400 for people using between 75% – 100% of their limits.
Step Change Debt Charity has reported a 7% increase in clients with credit-card debt in August 2020, compared to what was registered last year. Given the current situation, the role of true payment-processing professionals can never be underestimated.
To find a reliable merchant processor to work with, you just need to turn to an expert payment-processor comparison company in the UK that can best help you with merchant-services providers, such as SmartDebit.
Consumers Struggling With Bill Payments in the UK
The Financial Conduct Authority (FCA) in the UK has recently started working on allowing borrowers to request a payment deferral within additional 3 months. Also, the FCA was proposing that home repossession without the owner’s agreement until after that date wouldn’t be possible.
As Reuters has reported, almost 12 million people in Britain are having a difficult time paying their bills and paying back their loan money. This isn’t surprising at all: COVID-19 is still hurting the country’s economy. Based on an FCA survey, 12 million UK adults showed low financial resilience in July. 36% of the survey participants were fearing they wouldn’t be able to pay their loan or credit-card bills.
So, the economic situation worldwide is extremely fragile, and the UK isn’t an exception. Consumers are struggling to make bill payments. Businesses need to find only an expert payment specialist to work with.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of payment companies, including SmartDebit. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.