Bills, bills, bills

Brits fork out more than £18,500 a year on bills, a new study reveals. Each month, the average household parts with £1,541.91 on ultility bills, rent or mortgage payments, the weekly shop and other bills. That's a total of £18,502.86 a year or £962,148.72 between the ages of 18 and 70.

The study revealed that the cost of living has risen by £642.12 in the past 12 months, from £17,860.74 last year.  And it is car insurance, rent or mortgage costs and mobile phone bills which have seen the biggest increases during the past year, in comparison to home telephones and utilities which have seen the biggest decreases.

A spokesman for Confused.com, which carried out the study said: ‘'Times have been tough for a few years and people are really noticing the difference in their bank balances.  With many people still feeling the effects of the recession, paying the bills is yet another money worry.  And unfortunately, essentials such as food and rent or mortgage payments have gone up and up over the past 12 months.

‘'Things may only become harder as the new Government gets to grips with the country's financial situation and are forced to raise taxes or cut benefits.  So it's going to be more important than ever for customers to do their research and make sure they are getting the best possible deal on their bills.''

The study of 3,000 people revealed that Brits are now forking out an average of £528.37 a month - £6,340.44 a year - for their rent or mortgage, an increase of £158.16 since 2009.  But car insurance has seen the biggest jump over the past 12 months, going up £369.60 to an average of £1,460.04 per annum.

The food bill has also increased by £34.28 to £3,758.52 per year, while the amount Brits are spending on sky or cable subscription is up by £19.32 to £244.08 a year.  Council tax is now seeing Brits pay out £1,225.68 a year, while home and contents insurance accounts for an annual £247.44.

Another £2,802.84 is paid off credit cards or loans each year and the TV license costs a further £145.50.

And while the cost of mobile phone bills has risen by £113.04 to £420.24 a year, the amount being spent on a home telephone is down by £35.88 to just £283.80.

Bills for gas, electric and water are also down £22.32 on last year to £1,145.16, while internet costs have dropped £15.36 to £188.64 a year.  The annual spend on car tax is now £96.60 and life insurance is £143.88.

A spokesman for Confused.com added: "Rising car insurance premiums are significant. The latest Confused.com and EMB price index which uses data from 13 million real quotes identified a 31% rise in prices in the last year."

"Brits should shop around. The best deals are often online and using a price comparison site will ensure households are able to compare offers quickly and easily."