Bill payers face a harsh winter this year as the spiralling cost of living could result in many losing control of their finances, forcing them into fuel poverty and further debt.
The latest figures show that 71% of people will need to turn to their savings, credit cards and overdraft facilities in order to cover the costs of winter fuel bills.
The recent wave of energy price hikes has added an average of £155.75 each year to the cost of energy bills.
A poll conducted by a price comparison website found that 42% of people will need to dive into their savings to cover the additional energy bill costs. A further 17% of Brits said they will have to use their overdraft and 12% admitted they would need to turn to credit cards to pay their bills.
Credit cards can provide a short-term solution to the problem. However, if you fail to manage your finances effectively you could spiral into debt.
Scott Byrom, energy manager at MoneySupermarket, said; ìUK households are being pushed to the limit at the moment, so it’s no surprise to see so many turning to their savings to make ends meet.î
Gas and electricity prices have increased by almost 20% recently, adding almost £200 to the average dual fuel bill. Now is the perfect time to consider switching energy suppliers.
Compare gas and electricity with Money Expert.
If the price of gas and electricity was not enough to worry bill payers, the news of water company takeovers may raise concerns further.
Bills are expected to soar as water companies take over maintenance of private sewers. This brings more bad news to homeowners and renters, as it will affect around half of all properties in England and Wales.
In the last 20 years water bills have increased by up to 50% to an average of £356 a year. As of October 1st this year, water and waste companies in England and Wales will take responsibility for maintaining private sewers.
If you are concerned that the rising cost of bills and living will push you into debt, seek debt advice and find a debt management plan best suited to your circumstances.
Compare debt solutions with Money Exert.