Consumers using loans and credit cards to fund their spending will pay back more than £145,000 over the course of their lifetime, research has indicated.
A study by Confused.com revealed that the average Briton repays nearly £2,800 a year on such finance, while 55 per cent of people said they are currently struggling to make ends meet.
The price comparison website suggested it is more important than ever to shop around to ensure outgoings are minimised, after finding that the typical household pays more than £18,000 on items such as rent, insurance and utilities each year.
Spokesman Gareth Kloet noted that the tactic “makes sense”, as many people have less money now.
“When you see just how much it all adds up to, you can start to see how much you can save when you shop around to get the best deals,” he said.
Last week, moneysupermarket.com warned that energy customers coming to the end of a fixed-rate tariff should switch in order to avoid seeing costs rise.
By Andy Mackay