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Many people are already in debt by £200 a month after paying their bills, according to Income and Expenditure Hub. The group’s boss warned of a “tsunami of debt” facing many Britons but said there are many things people can do to improve their finances.
Average energy bills for a typical household in England, Scotland and Wales are increasing from £2,500 a year to £3,000 in April.
This will be compounded by the fact the instalments of the £400 energy bills discount are finishing with the final instalment in March.
Broadband and mobile bills are also set to increase in April, with consumers facing a £55 a year increase on broadband bills, according to figures from Uswitch.com.
Dylan Jones, CEO of Income and Expenditure Hub, told Express.co.uk: “We’re already seeing many people come to us for help – the biggest increase are those who are in the 18 to 25 age group.
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“Already we know that people are in debt by £200 every month, after all bills have been paid. This is set to spiral and we’re anticipating a tsunami of debt from every direction as the cumulative figures increase month on month.”
He said there are many things people can do to ensure they are in the “best financial shape” ahead of the April bills hike.
Taking the process step by step, he explained: “Firstly, start to look at all income and expenditure and where possible, cut out any unnecessary spending and subscriptions.
“Next, if you’re able to crush any outstanding debt on credit cards so you’re not paying additional interest that would be a sensible move.
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The savings expert suggested some other “quick and easy” practical tips to make savings around the house.
He said: “Other suggestions, which will help, include taking quick showers, draught-proofing windows and doors to retain heat, avoid the tumble dryer – which could be a little easier now with the slightly warmer days now with us – wash at 30 degrees and only fill your kettle for the drinks you need.”
Data from home management group Livlet found a family of four could save £204 a year on bills by reducing the time spent in the shower from eight minutes to six minutes.
Dasha Klyachko, CEO and founder of Livlet, said the potential savings from reducing time in the shower shows what a difference small lifestyle changes can make.
She said: “Making small and achievable lifestyle changes where we can isn’t trivial and can make a real difference, and this is reflected clearly in our data.
“We have created our new ‘Shower Cost Calculator’, which enables users to calculate their yearly gas and water expenses for showers that are served by gas boiler systems, and see the real life impact of their lifestyle changes.
“Little by little, together we can make a big difference to our planet. Amidst an ongoing cost-of-living squeeze, we believe it’s a win-win scenario.”
According to the calculator tool, a person who had one shower a day for eight minutes, with a flow rate of eight litres a minute, which is the typical flow rate for a hand shower, would spend around £72 a year in gas bills and £72 a year on water bills.
If this person reduced the length of their daily shower to six minutes, they would spend £54 a year on gas bills and £54 a year on water bills, saving £36 a year.
