Bills soar for 90% of households
Most (90%) households have seen their regular bills soar over the last six months.
Compare the Market’s latest research reveals we now need an extra £210 each month – or £2,560 per year – to cover the increase, leaving many struggling with credit card debt because of the higher living costs.
How many households have noticed higher bills?
- energy: 47%
- water: 45%
- broadband: 40%
- car insurance: 37%
- phone: 32%
- TV services: 30%
- home insurance: 29%
- rent: 25%
- mortgage: 14%
What are households most concerned about?
- high food prices : 41%
- winter energy prices: 38%
- inflation: 23%
- higher petrol prices: 18%
- rising rents: 17%
- increasing insurance: 15%
- mortgage costs: 10%
How are people tackling rising prices?
- cutting spending: 37%
- using less energy to keep their bills down: 34%
- shopping at cheaper supermarkets: 29%
- choosing unbranded items at supermarkets: 24%
- reducing discretionary spending like hobbies and holidays: 22%
- switching providers where possible for household bills: 15%
Some people have been helping their partners (19%), children (12%), parents (12%) and friends (10%) to organise their finances and save money in the past month.
Credit card challenges
Compare the Market’s research also shows many households are struggling with credit card debt because of high living costs.
Recently, 42% said they’d found it hard paying off their credit card balance in full over the past six months, due to:
- rising costs of daily necessities like food and fuel: 35%
- the need to focus on other essential bills, such as energy or rent: 33%
- borrowing more than they could manage to repay: 21%
- increased interest rates on their cards: 20%
On top of this, 57% said they didn’t have a strong credit rating, with about one in six (15%) saying their credit score was worse now than six months ago.
Worryingly, more than 60% were unaware of how credit cards can affect their credit score, including 28% of those aged over 55.
Despite concerns about credit ratings, 59% of cardholders feel confident about being accepted for a future credit card.
But one in six (16%) reported having their application turned down in the last six months because of:
- poor credit history: 27%
- excessive debt: 26%
- insufficient income: 25%
Do you need money help?
If your debts are keeping you awake at night, it might be time to ask for help.
In the last year, 57% of those we’ve supported have had credit card debt.
You can check whether you’re getting all the help you qualify for with our free benefits calculator, or you can ask us about debt solutions – some are free, others have fees.
We can also create a free budgeting plan for you to stay on top of your costs or give you free advice around managing your money.
Our free advice is available online or over the phone on 0161 518 8285. We’re here Monday to Friday 8am to 8pm, and over the weekend between 10am and 4pm.
Michelle Kight
Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.
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