The number of people in debt during the coronavirus lockdown in the North West has dropped by at least 5 per cent, a new study has revealed.

Research from savings site VoucherCodes.co.uk has revealed a dramatic shift in how people have managed their savings during lockdown, with some being able to pay off long-term debts.

Around 365,000 people in the region were able to escape debt, excluding mortgages, throughout the lockdown as people report savings on travelling to work and eating out.

Anita Naik, lifestyle editor at VoucherCodes.co.uk, said: “While social distancing measures have drastically changed life as we know it, it’s encouraging to see that many people are actually seeing an improvement in their financial situation as a result.

"Whether that’s saving an extra £50 a week or taking this opportunity to pay back any existing debt, it’s great to see a positive change in people's attitudes towards their finances.

"The decline in the number of people who are in debt since lockdown measures came into place is also promising. If you’re looking for achievable ways to save money during this time, simple ways to start include setting a weekly budget, and cancelling any subscriptions you no longer need.

"Finally, by being conscious to shop around and make use of discounts, you’ll be sure to get the best deals available, and the little savings will quickly add up."

Since lockdown began on 23rd March, over half of people said they are now saving up to £200 more per month and 8 per cent are saving £400 and over.

The study found, however, that lockdown has made 40 per cent of people in the region feel anxious about their financial situation, with many business owners uncertain about their future.