Millions of Britons are under financial pressure, new
research indicates.
In a study carried out by MoneyExpert, some 6.9 million
bills have not been paid since June last year. Overall,
council tax is the most likely household bill to have been
missed during this period of time, with some 2.3 million,
about one in 20 people, either meeting this demand for
payment late or not at all. Meanwhile, 1.39 million Britons
claim to have had problems in paying their gas or
electricity bill. In addition, an estimated 926,000
telephone bills have gone unpaid since June 2007.
Pointing towards recent price hike announcements by npower,
the price comparison website stated that more Britons may
find that they will be making late payments on credit cards
as they face "a difficult year financially". The energy
provider recently claimed that the cost of supplying energy
is to go up by some 15 per cent. As a result, this may add
some 150 pounds on to the average person's typical annual
utility bill.
However, the price comparison website suggested that
people's finances may come under even more strain as 2008
progresses, as more energy providers are due to increase
their costs. It was also put forward that loans and other
types of borrowing will be harder to access as a result of
the continued impact of the credit crunch.
Commenting on the figures, Sean Gardner, chief executive of
MoneyExpert, said: "For some time we have been waiting to
see how the financial squeeze would affect the average
household. Nearly seven million unpaid household bills is a
fairly conclusive sign that we are feeling the effects.
Paying one bill late is not something to panic about. But
if you find this is becoming something of a habit then you
need to take action. Missing bills can have serious
consequences, whether it's losing a service altogether or
even ending up in court.
"While interest rates have stopped climbing there are
plenty of other factors that could make life even tougher
for some people. With energy prices rising and credit
becoming harder to come by, there could be plenty of normal
people who will find paying even their basic household
bills a daunting prospect in 2008."
MoneyExpert went on to suggest that those who continue to
miss bill payments are potentially putting their credit
rating under risk of damage. This impairment may lead
people to find that they are unable to access cheap loans
and other types of competitively-priced borrowing in the
future. The price comparison website advised that anyone
concerned about their capacity to manage bills and other
financial demands should "take action now".
For people worried about their capacity to manage their
money, applying for a consolidation loan could be
advisable. In taking out this type of loan, borrowers may
be able to meet numerous demands on their spending, for
example utility bills, credit cards and council tax, at
once. This may lead people to find that they have more
disposable income at the end of each month. A study carried
out last month by GfK NOP for Bradford & Bingley revealed
that some 40 per cent of Britons are looking to get to
grips with money management over the course of 2008.
Meanwhile, 38 per cent are aiming to cut down their
spending.
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Abbi Rouse writes for AllAboutLoans.co.uk, a personal loans
comparison site, visit us today for information on all loan
topics including secured loans, and cheap loans from all
leading UK providers. Our Site:
http://www.allaboutloans.co.uk
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