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Intrum’s annual European Consumer Payment report shows that Europeans are concerned about the impact of rising inflation on personal finances and debt. The survey, which was conducted in 24 European countries, suggests that the COVID-19 pandemic is casting a long shadow over consumers’ financial wellbeing.

Taken as a European average, almost four in 10 say they are worse off today than they were before the crisis began at the beginning of 2020. By region, this figure rises to 44 per cent in Eastern Europe and 43 per cent in Southern Europe, compared to 31 per cent in Northern Europe.

“The pandemic has created a more financially polarised Europe. Countries and demographic groups have been affected unevenly; for example, low-income households and countries dependent on tourism and hospitality have suffered drops in income,” said Anders Engdahl, President & CEO of Intrum, Europe’s leading credit services management company. “At the same time, households and businesses have increased their savings ratio during the pandemic, with bank deposits increasing by more than 2 trillion euros.”

Split by income, almost half of low-income households reported being worse off, compared to 32 per cent among their high-income peers. Furthermore, the younger generation appears to have been hit harder than older groups. Four in 10 Generation Z (age 18-21) respondents said they were worse off than before the pandemic, compared with 30 per cent of Baby Boomers (age 55-64), for example.

The report suggests that consumers are worried about rising prices having a negative impact on their personal finances. Concern over debt is also growing. Many believe that their financial wellbeing will be at risk for some time to come, with a significant minority expecting the crisis to affect their finances for at least another 12 months.