Most of us can point to the obvious drains on our income; rent, bills, and the increasingly expensive weekly shop.

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What is harder to explain is why, even after accounting for these costs, a persistent sense of financial anxiety continues to linger month after month.

Our recent data from March shows 45% of Brits say inflation is still hitting them hard. This matches with the UK inflation rate rising to 3.3% due to increased fuel prices, airfares, and food. Economists have already predicted inflation could peak at around 4% this year, which would be significantly higher than the Bank of England’s target of 2%.

Of course, official inflation figures tell one story about the economy. How people actually experience their finances tells another.

One in four UK adults has no emergency savings at all, and a further 15% have less than £500 put aside. That means that an unexpected expense or job loss would push these individuals quickly into debt.

For a large share of the population, particularly women and lower‑income households, the absence of a financial buffer creates vulnerability and fundamentally shapes day‑to‑day money decisions.

Against this harsh backdrop, short‑term credit is no longer reserved for large or discretionary purchases. Tools such as buy now, pay later are increasingly being used to manage everyday cash flow: splitting supermarket shops across the month, spreading the cost of clothing and school essentials, or covering unexpected household bills when savings are not available.

Almost half of women say they would consider using BNPL over the coming year, underlining how embedded these products have become in routine household budgeting rather than exceptional ‘big’ spending.

At the same time, the structure of spending itself has changed. Financial pressure is no longer driven solely by a handful of large, high ticket buys. Instead, it is increasingly shaped by smaller, recurring commitments.

The Netflix bill, ChatGPT costs, gym memberships and food delivery subscriptions have become drains on our bank accounts.

Individually, these expenses often feel and look inconsequential. Collectively, they steadily eliminate disposable income in a way that is difficult to track.

Nearly half of UK consumers say they are actively trying to reduce subscriptions, hoping to reclaim around £25 a month. This reflects not simply belt‑tightening, but a broader attempt to regain control of bank accounts.

Encouragingly, regulatory change may begin to address some of these pressures. New rules on subscription transparency and cancellation are expected to make it easier for consumers to identify ongoing costs and opt out of services they no longer use.

Similarly, the Financial Conduct Authority’s move to bring BNPL products into formal consumer credit regulation, including clearer disclosures, affordability checks and more consistent protections, should help reduce the risk of consumers overextending themselves across multiple providers.

These regulations won’t resolve wider cost‑of‑living challenges on their own. But they may restore something that has quietly been lost: a clear view of spending. When spending is fragmented, deferred and automatic, uncertainty flourishes.

The bigger picture is that financial wellbeing isn’t just about income or inflation. It’s about how visible, predictable and manageable money feels day to day.

Until people feel more in control, payday will keep carrying a lot of emotional weight, even for those who seem fine on paper.

Todd Latham is the CEO of consumer trends platform Attest

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

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