Everyday bills are rising, causing further worry to employees and homeowners. Petrol, gas and electricity prices have soared with increases of around a third, with one of the highest increases in cost being in car insurance – with a rise of almost 70 per cent, reports show. At the same time, the average wage in the United Kingdom has reportedly increased by a mere 6 per cent, leaving households and families in devastating financial positions. “If salaries are not increasing along with these extreme rises in costs, how is anybody expected to get by? Especially those with large families or those that are less well off” says Alex Tsimboykas, sales director at EUM Consultants.
With bank loans on the decrease, and the property market suffering, many are forced into renting rather than getting that much needed step onto the property ladder. With the average first time buyer age increasing to 35 years old in 2012, rent cost increases of almost a quarter are hitting the United Kingdom hard. “The worst part about renting properties, is not that people are not getting onto the property ladder, but the fact the people are taking dangerous and risky ‘payday loans’ with extremely high interest rates just to pay bills on time, and in most cases, these not possible to pay back, making debt their only option” says Mark McAlear, Managing Director of EUM Consultants. With many households taking out these ‘pay day loans’ with interest rate as high as 4000 per cent, is it any wonder that thousands of households are falling into debt every day?
Surely there must be some light at the end of the tunnel? As of today, three of the biggest supermarkets will be lowering their petrol prices by up to 4 pence a litre, after the United Kingdom saw petrol rise to as high as 144.8p a litre last month; this is a much needed reduction. “Four pence doesn’t sound a lot in comparison to the list as long as my arm of increases, but to working families that drop their families to school, drive to work and use a car as a huge part of their daily routine, as well as those that use their car a fair amount, it is a great start” says Mark McAlear, managing director of EUM Consultants.
Supermarkets have lowered costs ‘to help customers in every way they can’. Four pence a litre is a start in making a difference. But what will it really take to help?