Six in ten households (63%) who are not confident they will be able to pay their bills in the coming weeks have taken no steps to strengthen their finances according to Comparethemarket’s new Money Action Index.
The research shows that almost two-thirds (64%) of households worried about the cost of living have found it difficult to pay bills in recent weeks. On average, households worried about the rising cost of living think they will need an extra £224 per month to cover their upcoming financial obligations.
However, only one in three (33%) have taken steps to strengthen their finances. In response, Comparethemarket is calling on households to look for savings now, wherever they can.
The majority of customers could save up to £324 each year on their existing car insurance by using Comparethemarket. Households can also save up to £148 on average each year on their buildings and contents insurance by comparing with us. Combined, this represents a potential saving for our customers of up to £671 million each year.
Comparethemarket’s Money Action Index also reveals that more than one in three (34%) households worried about the cost of living has offered financial guidance to help family or friends, including 15% who helped their children and 10% who helped their parents. This guidance helped their friends and family to save an average of £155 in the past month.
A further 27% of households lent or gave money to help friends or family cope with the rising cost of living. Households typically lent or donated an average of £206 to friends or family.
Mark Bailie, Chief Executive of Comparethemarket said “Our research shows most households could save hundreds of pounds by shopping around for deals on their bills, such as car and home insurance, and if people shop around for deals on broadband and credit cards, the savings just get bigger. Rising costs are a concern for millions of households across the UK, with many struggling to afford their regular bills and energy prices are at their highest level in years. During this difficult time, it is essential that people take the time to look for savings wherever they can to get the savings they deserve. Don’t pay more than you need to.”