Press Release of the Day – 13th May
Londoners have cancelled more Direct Debits than anyone else in the country since Covid-19 shut the country down
A study has found one in five of those in the capital have already cancelled some of their non-essential monthly payments, and a further 26 per cent are thinking about it.
Meanwhile, just 13 per cent of people in the east Midlands have put a pause on subscriptions like Netflix, veg boxes or National Trust memberships.
Craig Tillotson, CEO and co-founder of payments service Ordo, which commissioned the study, said: “The UK lockdown means many of us are having to take a much closer look at our personal finances.
“With growing uncertainty about their income, consumers want a tighter grip on money matters, and many are using this opportunity to undertake a much needed ‘Financial MOT’.
“We know people are starting to cut back on those discretionary items or services as a first port of call, before they review essential everyday expenditure or charitable causes close to their heart.”
The research of 2,000 adults also found the south east is home to those most worried about their finances as the UK’s lockdown continues.
Londoners are much more likely than anyone else to try and get out of a car lease – likely due to living in a city where you’re never too far away from a supermarket.
Just over a third (35%) of people in the south west have binned their gym membership – or are thinking about it.
And despite being confined to their homes, people in Scotland are most likely to have put a stop to their Spotify or other music streaming subscription.
It also emerged six in 10 Londoners plan on reinstating all direct debits they cancel during the lockdown period.
However, just 22 per cent of east Midlanders will do the same, and only 36 per cent of people in the north east.
The research also found people in the north east pay out the MOST in direct debits each month – on average, a huge £350.63 per person.
While the figure in the east Midlands is almost £100 less – just £252.80 per person on average.
Craig Tillotson added: “This research shows that the economic consequences of Covid-19 are magnifying consumers’ existing need to be in control of their money.
“Direct Debits don’t really work for them any more.
“Now more than ever businesses need to be offering their customers new digital request for payment services, like Ordo, if they, like us, want to help everyone’s financial wellbeing”
AVERAGE MONTHLY DIRECT DEBIT OUTGOINGS BY REGION:
North East – £350.63
West Midlands – £313.08
South East – £300.60
East Anglia – £296.11
Yorkshire and the Humber – £291.01
Wales – £288.35
London – £287.51
North West – £284.17
Scotland – £277.71
South West – £268.34
East Midlands – £252.80
– Ends –
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