People in the UK are being urged to check through their household bills to ensure they have not been overcharged as a new survey revealed seven in ten have paid too much in the last year.

The survey from the independent price comparison service uSwitch found people paid out as much as £6.7 billion in total when they shouldn't have and 95 per cent of all cases were identified by the customer rather than the bill provider.

For this reason it is essential for individuals to check their bills to see if they are correct. The companies found to be overcharging on household bills include utility, telecoms and mortgage firms. Considering these sectors take large chunks of people's incomes overcharging can be disastrous.

Worryingly, a third of consumers (33 per cent) have been overcharged more than once, with one in ten falling victim to it more than three times in the past year.

The average amount people have been overcharged by is £196 – although more than one in ten (11 per cent) have been overcharged by £400 or more.

Charges that were added when they shouldn't have been was the main cause of overcharging, with 42 per cent of all cases being attributed to this. Other reasons include incorrect tariff or product details being used (32 per cent) or a special offer or discount not being applied to the bill (25 per cent). Astonishingly, in the past year a quarter of consumers have simply had a household bill that did not add up.

The current climate in the UK is hard, especially for those lumbered with debt, and overcharging can cause a massive amount of grief to those losing out. However, despite this, those who were overcharged in the past year had to wait an average of 53 days to get their money back, while more than one in ten (13 per cent) were left waiting between two to six months. 

Some 12 per cent of people surveyed are still trying to get the issue resolved, while six per cent never got their money returned to them.

People are advised to check their bills thoroughly for anything that appears incorrect as they may be getting charged more than they should be.

By Joe White

The tradition of a high school prom is largely seen as an American phenomenon but it seems the event has set its roots in the UK as well.

According to a new report from Gocompare.com the price of the school leavers' ball has been skyrocketing in recent years and now stands at an average of £154, including the cost of dresses, suits, limousines, hair cuts and even fake tans.

The peak prom season runs from mid-June to mid-July and six in ten (59 per cent) of 16 to 19 year olds are about to embark on one.

While some parents really splash out on the event, spending hundreds of pounds on luxuries such as designer dresses and horse drawn carriages for the biggest party of their children's school life, many are struggling to find the money to pay for the basic necessities.

Nearly a third of parents (30 per cent) said the mounting costs of sending their children to the high school prom were yet another drain on their already stretched finances.

Unsurprisingly, those with daughters have their pockets hit the hardest as typically dresses cost more than the standard suit boys need. Parents of potential prom queens spend an average of £176.64 on their daughters big night, although more than a third (35 per cent) said they spend over £200 and five per cent admitted they will spend, or are about to spend in excess of £500.

Those with sons spend almost a third less than parents of girls. They spend an average of £131.56 on suits and flashy cars, while 18 per cent estimated spending over £200 and two per cent said they will spend over £500.

Of course, spare a thought for those parents who have twins heading out on a prom night, especially if they are not going in the same car.

While almost a third of parents (32 per cent) said they were happy their children had a prom night, nearly a quarter of the parents (24 per cent) said they found it hard to refuse to spend on the prom night even though they couldn't really afford it.

Several parents are putting themselves into credit card debt thanks to covering the costs of their children's prom night. It's important events such as this are planned for in advance as many parents underestimate the cost and find themselves in trouble.

Some 13 per cent said they spent too much on prom night and 11 per cent would like to see the event banned.

Claire Peate, customer insight manager at Gocompare.com, said: "The high school prom is an American tradition which has really taken off in the UK in the last few years. Peer pressure can lead to teenagers wanting to spend hundreds of pounds on looking their best and arriving in style, but nearly a third of their parents say the prom is a strain on already stretched family finances."

She advised parents to budget accordingly for the event and children should be encouraged to cover some of the costs themselves. Shopping around is also essential in lowering the cost of items such as dresses, suits and limousines.

By Amy White

People in the UK are feeling more positive about their financial situation than they have been since 2010, according to a new survey from financial information firm Markit. 

It said its Household Finance Index (HFI), which surveyed 1,500 homes, has reached its highest level for over three years, reaching 40.8 in June. This is the same level the survey produced in February 2010.

However, the reading still suggests most people believe their household finances have been deteriorating.

Recorded readings that are below 50 show that the majority of people have noticed a reduction in their standard of living, while anything over 50 reveal an improvement.

Around 26 per cent of households said their financial situation was worse this month, while almost eight per cent reported an improvement, although Markit said the data pointed to a pick-up in the overall household financial outlook over the next 12 months.

Tim Brown, Markit senior economist, said: "Improving household finance trends are an early indication that the UK economy has continued to strengthen in June. Households perceptions of financial instability are now at a level unsurpassed over the past four and a half years

Though the majority of people expect their financial situation to get worse in the coming year, there was an improvement in people's expectations.

UK adults also appear to be less confident about their job security than they were in the past as the index measuring workplace activity fell from 53.3 in May to 52.8 in June.

While people seem to be getting more confident about their financial situation there are still clear signs many are worried about how they will manage in the year ahead as prices and inflation rises, while income continues to get squeezed.

This is especially a problem for those on low incomes or individuals who are lumbered with debt as there isn't enough money available to pay for everyday essentials. For this reason many are turning to debt management in order to get a good hold on their finances.

By James Francis

As it becomes more difficult for adults to make ends meet in the UK, many are looking for ways to supplement their income.

One way of doing this is to take on a second job and new research from Direct Line Home Business Insurance has found three million people had one in the last six months in order to make a living, amounting to six per cent of the country.

Furthermore, 1.5 million (four per cent) have launched their own business to supplement the income received from their primary job.  

More than half of those who have an additional job (55 per cent) do so in the evenings after their normal working day is complete. Weekends (39 per cent) and after the family have gone to bed (26 per cent) are the next most popular working hours many take on.

Extra employment is not the only way for adults to boost their incomes. The research also found 36 per cent of people have started to look for innovative ways to make some extra money in the past six months.

Some 24 per cent of people are using the power of the internet to make money, potentially selling merchandise through online auction sites or taking on freelance design work.

Around 800,000 people have launched a business in their local area to earn extra income, including graphic design contracting from home, running small catering businesses for weddings and parties, photography or even small manufacturing companies. 

On average those who have taken on additional work to supplement their bank balance are bringing in almost £2,536 a year.  The research reveals over two million people are racking up at least 18 hours a week through second jobs or extra work, which is adding more stress to their lives.

Unfortunately, the current economic climate is leaving many people with little choice but to take on more work to pay for things, especially when they are lumbered with large amounts of debt.

As utility bills continue to rise alongside daily essentials such as food, individuals and families in the UK are struggling to find the finances to make ends meet every month. This naturally leads to people making cutbacks but there is only so much that can be cut.

On a regional basis, those in the south-east of England are most likely to have supplemented their primary income in the last six months, with 40 per cent of residents seeking to do so. Meanwhile, people in Scotland are the least likely (32 per cent) to have taken on extra work to boost their income alongside their regular employment.

Jazz Gakhal, head of Direct Line Home Business Insurance commented: "Many people are exploring creative avenues to make extra money.  People are looking to supplement their monthly income be it selling online, freelancing, or starting their own business.  

"Some will be building up their own companies at home while maintaining the security of a regular income before making the switch to being a full time business owner and manager."

By Amy White

Cash usage increased last year in the UK, with consumers and businesses making £20.8 billion cash payments, according to the Payments Council.

This was up from the £20.6 billion paid out in 2011.

Cash usage has been falling every year over the last decade, with the rise of debit and credit cards and the emergence of other payment methods including the use of mobile phones.

However, that changed in 2012 and this may have been a result of individuals being more careful with their funds.

By having physical money people can manage their finances more effectively and it allows them to monitor their outgoings. With debit cards, bank accounts can quickly dry up without individuals realising.

Some 7.2 million adults made all of their day-to-day purchases by cash in 2012, an increase of around 700,000 compared with the previous year.

Cash machines are still the most popular way for people to access their cash. The banking industry has been implementing an initiative to boost the number of ATMs in deprived areas and this has seen the number of cash machines rise to an all-time high of 66,134. 

Crucially, out of those, 46,069 are free for people to use and 97.2 per cent of withdrawals were from free-to-use machines. On average, people in the UK withdrew £66 per transaction using their debit cards.

ATM charges can cause individuals a headache when they check their accounts, as sometimes they may unwittingly use one that is not free to use. It is important for those using cash machines to make sure they are free in order to stop any surprises appearing on their statements.

David Hensley, head of cash at the Payments Council, commented: "Cash is still a vital part of our day-to-day lives, and more than half of all our payments are in cash, reflecting its easy use and its wide acceptance."

By withdrawing and using physical money many people find it easier to keep track of their finances.

By James Francis

An increasing number of fathers are being put under pressure when providing for their family, a according to new research by Vouchercodes.co.uk.

The report, which was obtained by the Money Advice Service, found three quarters of fathers in the UK worry a lot about their family's finances.

Worryingly, one in five fathers who are anxious about their situation try to keep it to themselves as they do not want to worry their loved ones.

The increased cost of living is making it more difficult for families to make ends meet, especially when income levels are not rising alongside it. This often leads to people falling into debt in order to make it to the end of the month.

For example, many individuals use their credit cards to pay for daily essentials once their bank accounts have been run dry, but this naturally makes it even more difficult to stay afloat the following month.

Almost half of respondents said the rising costs of utility bills is the main cause for concern, with many not knowing how they will pay them every month. Two-fifths claimed weekly food shopping is becoming so expensive they worry about how they will feed their family on such a small budget.

More than half of those surveyed revealed they are more anxious about their household finances and how they will continue to provide for their family now than they did 12 months ago.

Furthermore, over half of fathers said their partner’s earning capability is the biggest worry, with more than a quarter saying they are anxious because their partner either does not earn as much as they do or earn less since they have had children.

It is younger fathers, aged 18-24, who worry the most about their family’s finances with four-fifths admitting they worry a lot, compared to just 66 per cent of fathers aged over 55.

With utility bills, food prices and other daily essentials all rising in price it is important for people to budget accordingly in order to make sure they have enough money to cover it all.

By Joe White