Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Lloyds boss reports jump in customers tackling debt amid cost-of-living woes

It said that demand for debt consolidation services has lifted by 30% since the end of 2021 (Stefan Rousseau/PA)
It said that demand for debt consolidation services has lifted by 30% since the end of 2021 (Stefan Rousseau/PA)

The boss of Lloyds said the bank has reported that the number of customers acting to tackle problem debt has jumped by almost a third.

Customers have sought to get their finances in check through consolidating their debts as they have witnessed increasing pressure on their household finances, the company said.

Charlie Nunn, who took over at the finance giant, said customers are “concerned” about the economy but said he believes many are talking “too negatively” about the financial outlook.

It comes after inflation surged to 9.1% in May and is predicted to rise by as much as 11% this year amid jumps in the cost of energy, food and raw materials.

Mr Nunn told BBC Radio 4’s Today Programme that Lloyds research shows three-quarters of its customers are worried about recent price hikes and the impact this is having on savings.

“Customers are concerned, and they should be,” he said.

“We have seen some areas where there’s real points of challenge.

“Around 80% of individuals and UK customers and families have less than £500 worth of savings in their current account and their savings account.

“They might have money elsewhere but what we can see is less than £500.”

It said that demand for debt consolidation services has lifted by 30% since the end of 2021.

Lloyds said it has therefore seen a small decline in the number of people with persistent debt despite rising household bills.

The bank said last month it would hand a £1,000 bonus to the vast majority of its staff to help them cope with the rising cost of living.

Lloyds also confirmed that around 20% of customers were cutting back on discretionary spending in order to keep more funds to use on essential items.

Nevertheless, the group also said credit card spending on travel is up 300% and suggested there was still positivity in some areas of the economy.

Mr Nunn suggested there could be a danger that the country could talk itself into a worse financial situation.

“We are concerned that I think we collectively are talking ourselves into the risk of too negative an outlook,” he said.

“There are pockets of strength in the economy.

“There are significant parts of the consumers in the UK who have strength and really want to spend and create that demand and we can continue to see opportunities to invest in growth.”