1 in 10 Brits paid last month’s gas or electricity bill on credit
One in 10 UK adults – the equivalent of 7.6 million people across the country – used credit to pay off at least one of their utility bills last month.
New research conducted on behalf of debt advice and solutions provider Debt Advisory Centre reveals that 12% of respondents admit they used either a loan or credit card to settle their gas, electricity or water bill in the last month.
This is a slight decrease on the number of people turning to credit as a way to settle their bills six months ago. When asked the same question in February of this year, 19% of respondents revealed they had used credit to pay for their utilities.
However, the figure was also a sharp increase on August 2013, when just 5% of respondents revealed they had taken such action. This means the number of people paying for their gas, electricity and water on credit has more than doubled in the last 12 months.
With a significant proportion of people already turning to credit as a way to pay for their energy consumption, many more respondents are concerned about how they will pay their next bill. One in four (25%) of those surveyed said they were worried about how they would afford their next gas or electricity bill.
Across the country, people in London were the most likely to have settled their utility bills with some form of credit (19%). Meanwhile residents of the North East were the most concerned about where the money for their next bill would come from – with a third (35%) of people here admitting they were worried about how they would be able to afford it.
Young people were found to be the most concerned about affording their energy and water bills. Nearly one in three (31%) 25 to 34-year-olds and a similar number of 18 to 24-year-olds (35%) said they had worries. 18 to 24-year-olds were also the most likely to have used a loan or credit card to cover their last bill, with nearly a quarter (24%) of respondents in this age group doing so.
Ian Williams, spokesman for Debt Advisory Centre, says: “While it’s reassuring to see that the number of people paying for their utilities on credit has fallen over the last six months, it’s still double what it was in August 2013. It’s no wonder people are worried about how they will afford their next bill.
“However, relying on credit for essential expenses like gas, electricity and water can leave people in a vulnerable position. If they are using credit to pay for their utilities because they’re prioritising paying off other debts, it may be worth seeking expert help and advice so that they can manage their finances more effectively.”