MoneySuperMarket’s latest ‘Bill Barometer’ claims Britons have missed 15 million bill payments worth a total of £882 million in the last 12 months.
This comes as the national price tag to run a UK home has climbed to £405 billion due to rising living costs.
Households are spending £33 billion collectively a month on essential bills, or £405 billion each year – that’s a £1,360 burden per household each month. A quarter of those polled are paying more than £500 a month on mortgage or rent payments, with 5% of those polled spending in excess of £1,000 just to keep a roof above their heads.
Respondents admit that financially this is the hardest bill to cover and 8% who pay this bill have missed at least one rent or mortgage payment in the last year – 2.2 million people.
19% have missed an essential bill payment in the last 12 months and in total over 15 million bill payments have been missed in the last year; totalling £882 million for the nation (an average £175 per household). Of those who have missed paying a bill, 27% say they’ve been “hounded” for payment, and 43% have incurred extra charges and interest penalties. 18% say their credit rating dropped as a result, while 8% have been served with a County Court Judgement (CCJ).
16% admit they already wait until the very last moment before paying a bill. Meanwhile, a further 12% predict they’ll miss another bill or pay it late in the next four weeks – rising to 22% for those aged 18-34.
Two-fifths say will cut back on basic spending, one in five will cut back on other bill payments, and one in twenty will bury their heads in the sand and ignore it. 37% admit they missed paying a bill because they simply couldn’t afford it and 28% say they missed a certain bill because they had to prioritise paying another.
The most common bills to be missed are credit card and loan repayments (15%), closely followed by paying for childcare. Those aged between 18 and 34 are most likely to miss a repayment on a credit card or loan, with 23% of those who pay this bill having done so in the last year. Rent and mortgage payments are third on the list of bills most likely to missed and again it is those between 18 and 34 who seem to be struggling the most as 11% have missed paying this bill at least once in the last 12 months. Wales tops the regional list as the most likely to miss a mortgage or rent payment, with 14% having done so in the last year, followed by London (11%).
Clare Francis, editor in chief at MoneySuperMarket, said: “Many households are precariously juggling their bill payments, choosing which to pay and which to ignore. It’s a balancing act that can’t continue long-term without significant implications. Worryingly one in five people say outgoings would only have to go up by £50 a month (or less) for them to struggle even more.
“Given interest rates are likely to start rising next year, leading to increases in the cost of borrowing, it is a real concern that many people won’t be able to cope.”
