Millions pushed into red by rising costs
04/07/2008
Rising utility and fuel bills are sending millions of households in to debt, according to a recent survey.
The credit crunch appears to be well and truly taking hold - 4.1 million householders were pushed into the red last year, according to moneysupermarket.com.
Householders are increasingly taking out loans to stay above the water line - seven percent did so in 2007 - and 2.3 million have increased debts on their credit cards.
The website says the blame lies firmly at the feet of huge increases in utility bill costs, mortgages and rental - it's not set to get any better, either, with a huge amount of mortgage deals - worth £30bn - coming to an end in July.
There are ways to beat the crunch, though. Resourceful shoppers can do themselves a favour by shopping around for the lowest possible deals - and not succumbing to brand loyalty.
Changing a utility supplier is a great start, but savings can also be made on insurance by getting new quotes - and even on petrol, simply by keeping your eyes peeled for the best deals. The global economic slowdown is certainly causing problems, but by shopping around, you can at least help keep the threat of debt from your doorstep.
The credit crunch appears to be well and truly taking hold - 4.1 million householders were pushed into the red last year, according to moneysupermarket.com.
Householders are increasingly taking out loans to stay above the water line - seven percent did so in 2007 - and 2.3 million have increased debts on their credit cards.
The website says the blame lies firmly at the feet of huge increases in utility bill costs, mortgages and rental - it's not set to get any better, either, with a huge amount of mortgage deals - worth £30bn - coming to an end in July.
There are ways to beat the crunch, though. Resourceful shoppers can do themselves a favour by shopping around for the lowest possible deals - and not succumbing to brand loyalty.
Changing a utility supplier is a great start, but savings can also be made on insurance by getting new quotes - and even on petrol, simply by keeping your eyes peeled for the best deals. The global economic slowdown is certainly causing problems, but by shopping around, you can at least help keep the threat of debt from your doorstep.
