Over half of households go into debt to pay bills
Consumer research shows that 57% of families are regularly dipping into their savings or accepting financial handouts from relatives and friends in order to pay for essential services.
The findings highlight the impact on many Irish households struggling to stay afloat. They reveal the financial pressures under which many families are living — with the prospect of further pain ahead with the introduction of the new property tax in the second half of this year and water charges in 2014.
The survey of 1,000 adults commissioned by a new price comparison website, uSwitch.ie, showed 56% of people are having to borrow money to pay regular household bills, while 43% are resorting to credit cards and overdrafts to meet such payments. In addition, 9% of those surveyed admitted relying on bank loans to pay off household bills.
Some 60% of consumers believe rising energy costs are severely affecting their disposable income, leaving them with little extra cash at the end of each month after all bills have been paid.
The survey highlighted how paying electricity bills is a major concern for 62% of households.
Eoin Clarke, head of uSwitch.ie, said the survey underlined the benefits of shopping around to ensure householders get the best value for money when it comes to household bills.
Mr Clarke said consumers could save by paying energy bills by direct debit or through an online plan.
“You could save as much as €254 a year just by switching energy suppliers alone,” he observed.
For example, €124 could be saved on an average annual gas bill by switching from Bord Gáis’s standard plan costing €961 to the direct debit discount offered by Flogas.
Savings of €130 can be achieved by moving from Electric Ireland’s standard domestic plan costing €1,179 to Airtricity’s Home Electricity Saver plan which requires a one-year contract, direct debit payments and the issuing of e-bills.
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