The global pandemic has caused financial strain for many consumers, leaving them struggling to assess their financial situation. On one hand, those with tight budgets want to save as much money as possible, while others are feeling the pressure to keep up with the latest trends – even if it means going into debt.
Recent research conducted by the UK-based financial company, Moneyspor, has shown the different ways shoppers are tackling their financial issues. According to their survey, 64 percent of shoppers have implemented savings strategies in order to cut back on spending, while 36 percent of people are using buy-now-pay-later services to make purchases despite not having the cash to do so.
Those with tighter budgets have turned to bargain shopping in order to stick to their spending plans. They are reducing their overall spending, looking for sales, using cashback rewards, and shopping around for cheaper options. At the same time, those with more money to spend are using services such as “buy now, pay later” to make purchases, such as clothing and electronics, without having to wait until they have the money in the bank.
The trend of spending more money than a person has available is concerning, especially with the additional burden of interest payments. However, the survey suggests that people are taking measures to protect themselves from overspending. 39 percent of shoppers have reduced the number of payment methods they use in order to control their spending, while 37 percent have increased their financial education to help them make better decisions.
Overall, it appears that shoppers are managing their cash flow in different ways depending on their current financial situation. Those who can afford to indulge in a few luxury items are taking advantage of “buy now, pay later” services to make those purchases, while those on tighter budgets are being more cautious and seeking out bargains. Ultimately, it’s up to each person to decide how to best manage their finances in this uncertain time.
