PRLog (Press Release) –
May 15, 2008 – Record numbers of families are spending over £2,500 a-year more on increased utility bills and higher mortgage payments, according to research published today by comparison site
http://www.comparemoreatdixons.co.uk.
The study revealed that housekeeping budgets have been left so tight by price rises that six out of ten are spending less on food in an attempt to limit their spending. Over one in ten (13 per cent) admitted to being out of pocket by up to £400 per month whilst over a third (35 per cent) are facing each month with up to £250 less. Five out of ten respondents are having to reduce their spending by more than ever before in order to make ends meet.
The escalating cost of household bills such as gas and electricity was cited as the greatest reason behind the dramatic decline by over 3 in 4 respondents (76 per cent). Recent price hikes by the UK’s leading energy suppliers have left average bill payers facing costs of over £1000 per annum, an increase of as much as 15% on last year.
Last year’s interest rate rises have also been identified as having a big impact. One in four respondents (25 per cent) revealed that higher mortgage rates and credit card bills have reduced their spending power.
The study revealed that Brits are increasingly shunning the high street and shopping online for bargains as they try to make ends meet. Over a third of respondents (36 per cent) revealed they would be turning to comparison sites as a way to help save money.
deVere Forster, MD, Dixons.co.uk comments: “Shoppers faced with increasing insurance and household utility bills are looking for new ways to save money but don’t have the time traditionally required to shop around. Comparison sites like ours,
http://www.comparemoreatdixons.co.uk, particularly from a trusted brand like
http://dixons.co.uk, provide a very effective way to search across a broad range of products and services like gas, electricity and insurance and to quickly identify where savings can be made.
“In addition, and unique to us, as well as online price comparisons, we provide a free phone number on the site to enable those customers who prefer to do so to check out prices and purchase products to over the telephone.”
The reduction in disposable income is likely to have a significant impact on the products and services Brits will be buying as they seek to make ends meet. Cancelling Sky or cable television subscriptions, reducing water bills and using the car less were amongst the most popular ways to reduce monthly outgoings. Mobile phones are also identified as a source of significant expenditure, with nearly one third (31 per cent) planning to cut down on usage.
Whilst nearly one in ten (9 per cent) respondents even plan to stop smoking, the study revealed that millions of British shoppers find some products such as eating out and booze slightly harder to give up. A quarter of respondents still plan to eat out whilst going to the pub is set to remain a popular activity for over 10 per cent. Keeping up appearances was also viewed as a necessity with clothes and make-up continuing to remain significant sources of expenditure.
Despite eight out of ten respondents looking to cut back on spending, having less disposable income is expected to have a severe impact on the financial stability for millions of Brits as they struggle to make ends meet. Nearly two in ten of the respondents questioned admitted that they will spend more than they earn leaving them facing the prospect of ending the year in significant debt. Over a quarter (29 per cent) also admitted that they will be plundering savings accounts in an attempt to make up the shortfall.
Mark Adams, Ipswich, comments: “We’ve noticed over recent months that our money just isn’t going as far as it used to. The next payday can often seem like a long way away and it’s really forced us to look at what we spend our money on and how we spend it. Where we were really able to make some savings was on the general household and insurance bills, which you tend to take for granted. We saved enough money to get ourselves a new TV and games console”
