Disorganised households estimate they are losing £801 a year by forgetting to make changes to their contracts, according to a poll of 3,000 British homeowners.
The study found 45% have incurred late payment fees and 22% are guilty of forgetting to renew, cancel or switch a contract before it either expires or auto-renews.
Mortgages and energy tariffs among the most costly
Mortgages were found to be the most expensive for late payments, setting people back £78.32 a year by not paying on time, followed by energy tariffs (£67.24) and vehicle insurance (£58.49).
By not going out of their way to switch broadband contracts, households think they are spending an additional £91.82 a year, while failing to switch energy provider has annually cost them an estimated £103.62.
Uswitch warns of energy price hike impact
Uswitch, which commissioned the study, warns the nation that not switching energy tariffs could end up paying £355 more per year, after the recent energy price hike.
It was also revealed two thirds (67%) haven’t changed their energy tariffs within 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."
Confidence and barriers to action
The study also found nearly four in 10 (37%) feel ‘very confident’ in knowing when their household's contracts are up for renewal.
But one in five (21%) forget to act on this information, with broadband and energy tariffs being the most common contracts that have been accidentally left to auto-renew.
Lack of time (15%) and motivation (9%) were cited as barriers preventing property owners from staying on top of these admin tasks.
However, when incurring late payment fees or overpaying, 22% did so as they forgot the due date, while 18% didn’t have the cash when it was time to pay.
Meanwhile, nearly a quarter (24%) actively look for better deals every month, but 20% do this only once a year.
Personality types and bill management
The OnePoll.com study also compared personality types, looking at those who think they are more organised (Type A), alongside people who consider themselves more relaxed (Type B) when it comes to household admin tasks.
It revealed Type Bs are 40% more likely to have been hit with a late payment fee than Type As. Also, while 35% of Type As typically pay household bills immediately after receiving them, 10% leave it as late as they can.
In comparison, just a quarter of Type B adults address a bill straight away, with 18% usually waiting until the last minute.
As a result of staying on top of their household finances, Type As say they save themselves around £23 more each year than their easy-going counterparts.
It also found seven in 10 Type Bs have not switched their energy tariff in the past 12 months, with 8% of those putting this down to simply not getting around to it.
Sabrina 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."
