Millions Unable to Pay their Bills

Jonathan	Nolan By Jonathan Nolan, 6th Feb 2018 | Follow this author | RSS Feed | Short URL http://nut.bz/2pe9x_oz/
Posted in Wikinut>Business>Accounting & Finance

More news that people are struggling to pay their monthly bills. Are you missing out on savings that you could make in other areas of your life?

Is it a red letter day?

When you get your bills through the door, are you one of those people who pay them off straight away or wait until you get that warning through? More of us Brits are having no choice but to wait for the warning letter to come through, as they are struggling to pay their bills on time. It’s estimated that this is true for around one in eight of us, who are unable to meet repayments.

A survey conducted by insolvency group R3 has discovered that around eight million people in the UK will have to go into their overdrafts this month, which has increased 5% since this time last year. This is down to rises in energy and food prices (which I mentioned in some previous blogs) and many are opting for credit help to cover essential payments.

This could also be the reason for the increase in people taking out short-term loans, as people are struggling to maintain the gap between income and outgoings. This has meant that we are all searching for ways to keep afloat when it comes to our finances. You can visit loans for bad credit for more details. Here it explains that they can be a convenient way to help with temporary cash flow difficulties, as they are a quick and easy way to get a small cash loan. This means that customers are able to pay for their bills and then just repay the loan on their payday. In some cases, this can be cheaper than forking out for bank fees.

Many financial professionals advise that you should try to keep some money aside as a safety net, should you be unable to meet crucial bills. This isn’t always possible though as so many people across the UK are battling with pay cuts and rising costs. With things looking bleak on the horizon for our finances, it’s not surprising that over a third of the people interviewed said that they thought it’s only going to get worse over the next six months.

No More Costly Fees for Using Your Credit Card

Good news if you travel a lot, as this week it has been announced that the OFT are upholding a complaint put in by consumer group Which? regarding costly charges.

A blog post that I wrote around February time, talked about the fact that Which? found that many companies including airlines, ferry and rail companies, were adding hidden fees onto the amount that they charged you to pay with your credit card. In some of the worst cases, if a family of four tried to book airline tickets, they would have to pay an extra £40. That amount of money could make a massive difference to the costs of your holiday, especially if you aren’t aware you’re going to have to pay it.

Which? found that in some cases, the companies let the customers get to a very late stage in the whole payment process before telling them about the charges.
So, what will happen now is that the OFT will be checking to ensure that companies are clearly stating how much you will have to pay to use your card online. If this isn’t done, then the company could face punishment. One of the reasons that the complaint was taken on was because customers were being deceived in some cases, and that it could have been cheaper for them to go elsewhere.

We definitely agree with the concept of not hiding any charges, as we are completely transparent when it comes to how much you will have to repay on your loan. This is all clearly laid out in our repayments chart, which you should check out for applying for any form of credit.

Which Sex Are Worst For Overspending?

I’m sure most of you guessed correctly, yes it’s women. Not good news for us females today as research conducted by a short-term loans company found that 36% of women in the UK are overspending. These women surveyed admitted that they suffer from something called ‘salary dysmorphia’, which I’m sure a lot of us (both men and woman) are guilty of doing sometimes. This is the problem of spending more money than we are earning.

The research conducted showed than men aren’t as bad for overspending every month, and the reasons given for women overspending were to provide for their family and to treat themselves. Also their main priorities are clothes, groceries and holidays (probably in that order).

In addition to the gender differences, research also found that the younger generation are the worst offenders for overspending. According to the research from the short term loans company, 34 per cent of 18-24-year-olds overspend on a regular monthly basis compared to just 24 per cent of over 55s.

If you are having trouble budgeting from month to month then you might consider a payday loan to help out with expenses. Although they shouldn’t be used on a regular basis to stem financial difficulties, they could help you if you are struggling just before payday. They should not be used however, if you suffer from long term debts.

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Economic Growth, Economising, Economy, Loans, Money

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