Disorganised households could be paying £801 extra each year due to late bills and missed savings, according to research by Uswitch. A poll of 3,000 British homeowners found 45% have racked up late payment fees, and 22% have forgotten to renew, cancel or switch a contract before it expires or auto-renews.
Costliest late payments
Mortgages were the costliest for late payments, setting people back £78.32 a year, followed by energy tariffs at £67.24 and vehicle insurance at £58.49. Households also believe they spend an additional £91.82 a year by not switching broadband contracts, while failing to switch energy provider has cost them an estimated £103.62 annually.
Uswitch warns that not switching energy tariffs could cost households £355 more per year, after today's energy price hike. Nearly one in five Brits have missed a bill because they did not have the money to hand.
Procrastination and stress
Two thirds (67%) of respondents have not changed their energy tariffs in the last 12 months, with 38% saying they find managing bills and paperwork 'stressful'. Sabrina Hoque, a spokesperson for Uswitch, said: "Many of us like to think we'll get around to bills admin tomorrow, but small delays can quickly add up.
"Some households are missing opportunities to save money simply because important tasks slip down the to-do list. Taking a few minutes to review bills and contracts can make a real difference, especially ahead of winter."
Personality types and bill management
The study also found 37% feel 'very confident' in knowing when their household contracts are up for renewal, yet one in five (21%) forget to act on this information, with broadband and energy tariffs being the most commonly forgotten contracts. Barriers to staying on top of admin tasks include a lack of time (15%) and motivation (9%).
Among those accumulating penalties, 22% forgot the due date, while 18% could not afford the bill when it arrived. Nearly a quarter (24%) actively look for better deals every month, but 20% do so annually.
The OnePoll.com study compared personality types, finding that Type Bs are 40% more likely to have been hit with a late payment fee than Type As. While 35% of Type As typically pay household bills immediately, 10% leave it as late as possible. Just a quarter of Type Bs deal with a bill straight away, with 18% waiting until the last minute. Type As say they save around £23 more each year than Type Bs.
Seven in 10 Type Bs have not switched their energy tariff in the past 12 months, with 8% of those putting this down to not getting around to it. Hoque added: "With energy costs rising today, and the outlook for January looking even more worrying, procrastination on bills could have real consequences.
"It's really urgent that households who haven't switched recently review what tariff they're on – and make sure they get off the standard variable rates, which are set to rise again in January.
"Shopping around for a well-priced comparison could save potentially hundreds on bills over the winter, when we use the most energy to keep our homes warm.
"Some of the cheapest energy deals on the market undercut the predictions for January by well over £350, so switching is the most crucial lever households can pull to reduce bills right now, as well as taking control of our energy use around the home.
"Even those who prefer a more laid-back approach could benefit from setting simple reminders to stay on top of end-of-contract dates."
