Paid-for TV subscriptions and mobile bills most likely to go unpaid

Paid-for TV subscription is the payment most people feel it would be acceptable to default on if they were feeling the pinch financially (22 per cent), according to research from Direct Line.

The research showed that people were also more likely to shun payments for their mobile phones (16 per cent) and credit cards (eight per cent) if they were feeling the economic squeeze. At the other end of the spectrum, fewer people would default on a mortgage payment (one per cent) and personal loan (two per cent).

Only one in 20 people (five per cent) thought that they would lapse on payments for their home contents insurance. Although this may seem like a small percentage, it could leave 1.2 million households paying out a fortune if they were to suffer a household disaster such as fire, theft or flooding.

To help with New Year resolutions to get household finances in order, Direct Line Home Insurance is offering 50 per cent off home contents insurance to new customers until February 28th 2009.

Andrew Lowe, Head of Direct Line Home Insurance, said: "Being pennywise when buying your policy could lead to being exposed when it comes to making a claim, if you find you're left with not enough cover for your needs, or worse, with no cover at all.

"We're giving new customers 50 per cent off their home contents insurance to show that it's possible to get a good deal on home insurance and still feel safe in the knowledge that they are covered by a policy with enough cover to suit their needs."

The top five payments that householders are most likely to default on if they were feeling the squeeze economically:

1. 'Paid for' TV subscription (22 per cent)
2. Mobile phone (16 per cent)
3. Credit cards (8 per cent)
4. Home contents insurance (5 per cent)
5. Broadband (4 per cent)