An estimated 20M Brits have not switched providers, need debt management advice

An estimated 20 million UK consumers have not switched providers for their everyday financial services and utilities in the last 12 months and urgently need debt management advice. Comparison group Gocompare.com said that 1 in 5 Brits are welcoming the new year worried about their finances.
The research has found that 37.4 percent of the population worry about the rising cost of living and bills. Millions of consumers have yet to switch on to switching.

Surprisingly, despite the cheaper car insurance offered by some providers, an estimated 21 million drivers are missing out on these offers because of their refusal to switch providers. Customers could save an average of £211 by switching their car insurance after comparing policies from over 120 different insurers and brokers.

Lee Griffin, business development director of Gocompare.com said, “Comparison sites make it extremely easy to compare all manner of products and services from car insurance to credit cards. Whilst lots of people have become committed comparers and switchers our research shows that millions of consumers could still be paying more than they should for things like insurance and energy because they stick with their existing provider without checking out the competition. In our experience the only reward you get for loyalty is a higher price than you’d pay as a new customer so shop around for the best deals and if your existing provider seems expensive, switch.”

It was also revealed that only 19 percent of consumers switched their home insurance provider in 2009.

Another 20 million households are estimated to be wasting their money every time they turn on the lights as only 20.6 percent of consumers switched their energy supplier last year. Consumers are advised to review their gas and electricity provider at least once a year to ensure they are not paying more than they need to. Energy companies regularly introduce new price tariffs to tempt customers away from their competitors.

State regulator Ofcom said there are now 76 million mobile phone subscriptions in the UK. However, only 18.9 percent of consumers switched their mobile phone tariff in the past 12 months and although it can be a pain to have to change your number, millions of people could possibly save money by moving to a more competitive tariff.

One of the most effective ways of cutting down your outgoings is to reduce the amount of interest you pay on your credit card balance. According to the Bank of England in January 2009 the UK credit card debt was approximately £53 billion, of which 72.5% was interest bearing. In the last 12 months just 10.6% of consumers switched their credit card balances. Cards such as the Virgin Mastercard offer a 16 month interest free period and you can use that time to really make an effort to clear your debt or at least pay off a hefty chunk of it.

Only 14.4 per cent of consumers switched their broadband provider last year despite fierce competition between internet service providers. Some like BT even offer freebies such as wireless routers to attract new customers as well as discounted rates for the first three to six months of the contract. Conditions will apply of course but it makes sense to compare the competition and switch if you can find a better deal.