Car drivers may need debt management plans as costs rise

Debt management plans may help cash-strapped car drivers as the rising cost of running motor vehicles places increasing pressure on budgets.

A surv…

Debt management plans may help cash-strapped car drivers as the rising cost of running motor vehicles places increasing pressure on budgets.

A survey by motor insurance company Green Flag has revealed the impact of factors such as higher prices at the pumps is leading to many altering their habits, with 14 per cent of motorists giving up their cars altogether, while others are being more conservative.

This includes 58 per cent driving slower to save fuel, 27 per cent using more public transport, 42 per cent walking to their destination the majority of the time and ten per cent spending extra time on their bikes.

In addition to this, 21 per cent said they now shop online more to save having to go out at all.

Head of Green Flag Henry Topham said more expensive fuel is having “a massive impact on household budgets and consequently having a dramatic impact on driver behaviours”.

And, he added: “For many drivers, owning a vehicle is a necessity rather than a luxury, so they are being forced into driving more fuel economically or switching to more fuel efficient modes of transportation in the face of rising prices.”

Those with debts may be among those needing to seek help as their necessary car use impacts on their finances, even if they are trying to save by cutting down on motoring costs where they can.

Concerns about the cost of motoring as petrol prices have soared led to chancellor of the exchequer George Osborne announcing a 1p cut in fuel duty in his Budget speech in March.

He also cancelled plans inherited from the previous government to increase the fuel duty escalator.

By Joe White

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