Latest UK Debt News & Personal Finance | ClearDebt Newsdesk

A number of people may be increasing their debt troubles by not searching for the cheapest energy prices, it has been suggested.

New research from uSwitch.com found only 13 per cent of households have sourced the best deals for their gas and electricity.

It means just 3.5 million families have located the most favourable rates, while 87 per cent are still being charged over the odds by their supplier.

The study showed seven million people have taken out price guarantee plans, which often involve a hefty premium.

Moreover, 3.8 million electricity customers and 2.6 million gas consumers are currently on expensive prepayment meters.

Around ten million individuals are still on standard plans, resulting in them shelling out as much as a collective £2.2 billion a year in overpayments.

Individually, these people may be charged £300 more than online customers every 12 months.

The portal cited a recent Ofgem report that revealed 30 per cent of the people who have switched their payment plans did so through an independent comparison service and 33 per cent made the move because of door-knocking.

This meant 61 per cent of switchers discovered better deals through a supplier – providing no guarantee they had been offered the cheapest option.

Ann Robinson, director of consumer policy at the website, said: “I would urge householders to move to dual fuel, pay by direct debit and sign up to an online plan so that they can start to enjoy competitive prices straight away.”

A recent investigation carried out by Confused.com discovered Brits are facing elevated household bills, with the average resident forking out around £18,500 a year on such costs.

By Joe Shervin

An increasing number of Britons may soon require debt management help as new research has found many people feel less well-off financially than they did in 2009.

A study carried out by Gocompare.com discovered 41 per cent of consumers in the UK believe their monetary affairs to be in worse condition than 12 months earlier.

But despite 25 per cent of the survey’s respondents admitting they need to make cutbacks to sustain a decent standard of living, the website found 12.8 million individuals (27 per cent) have not switched provider for any of the most common financial products in the last year.

Moreover, in excess of three million customers (6.3 per cent) said they have never checked or compared their financial arrangements after the initial set-up stage.

The survey showed just 17 per cent of those questioned have considered changing their energy deal in the last 12 months, while only 12.8 per cent have compared their savings account.

Switching broadband deals has been thought about by 11.6 per cent of UK residents, 10.1 per cent have looked at their bank account situation and 7.2 per cent have compared their mortgage deal.

Meanwhile, as little as 4.6 per cent of consumers have looked at the possibility of changing their land telephone deal in the same period.

John Miles, business development director at Gocompare.com, advised: “With the economic downturn biting hard, many consumers are now struggling to make ends meet so it’s important that everyone does all they can to save money.”

The recent UK Online Retail Report from PayPal revealed 88 per cent of shoppers often search for special offers or promotions before carrying out a transaction.

By Joe Shervin

It appears many people in Britain are becoming bargain-hunters in an effort to stave off the need for debt management help, according to new figures.

PayPal’s annual UK Online Retail Report has shown Brits are constantly looking to save money on their transactions.

Whether shopping on the high street or through the internet, 88 per cent of consumers admitted they now search for special offers or promotions.

This equates at more than 43 million individuals and is an increase of nearly 1.5 million people recorded in 2009.

Moreover, almost three-in-five shoppers (62 per cent) stated they have used codes or discount vouchers to purchase goods in the last six months.

The majority of respondents (53 per cent) who use the world wide web to buy products said they even compare the costs of small, everyday items.

And it appears women are most prone to search for bargains, as more than nine-in-ten (93 per cent) of females claimed they scour for discounts, compared to 84 per cent of men.

Around 18 million adults in the UK (37 per cent) acknowledged they can be obsessive when locating the cheapest alternatives and use every money-saving tool that they are aware of.

Sue Hayward, a contributor to the report and a personal finance journalist, commented: “I think most people are looking to make their money go further rather than cutting back.”

However, recent research carried out by Confused.com revealed many individuals in the UK find their financial situation baffling, as 71.9 per cent of respondents admitted they suffer confusion regarding how best to handle their cash.

By Amy White

A number of people may be exacerbating their debt troubles through carelessness and neglect, it has been suggested.

New research carried out by MSN Money revealed Britons are wasting a combined £4.4 billion a year through acts that it has coined ‘idiot taxes’.

These practices include avoidable mishaps, such as putting the wrong fuel in a car engine.

An MSN Money poll found the most often repeated idiot tax is mobile phone loss and breakage.

Around a quarter of those surveyed admitted paying large amounts to replace their handsets, which equates to the nation shelling out an annual £2.4 billion.

Moreover, forgetting to return a library book or a DVD can prove another costly mistake, as 20 per cent claimed to have fallen foul of this idiot tax, resulting in £7.6 million being paid.

An additional £547 million every 12 months is forked out by motorists putting the incorrect fuel into their vehicles.

The study found one-in-ten drivers often make this error.

In London, ten per cent of car owners stated they have forgotten to pay the congestion charge, resulting in £91 million a year of extra fees.

Other bad habits included losing a wallet or purse, forgetting a plane or train ticket, locking house keys inside a property and misplacing a laptop.

Simon Ward, senior editor at the organisation, said: “Ensuring we are keeping on top of basic costs and trying to keep a more watchful eye out is key to saving money in the long run.”

Endsleigh recently advised students heading off to university to be careful with their belongings after it calculated the average university goer will be packing around £4,000 worth of possessions.

By James Francis